JP Morgan pays out another $100m fine over London Whale
JP Morgan yesterday dipped into the funds it has set aside to cover a tangle of legal and regulatory difficulties to settle charges that it "recklessly disregarded the fundamental precept on which market participants rely".
The admission came over the activities of its so called "London Whale" trader whose huge positions led to multi-billion dollar losses.
The bank will also pay a $100m (£63m) fine to the US Commodity Futures Trading Commission (CFTC). It has already shelled out $920m over the affair to regulators on both sides of the Atlantic.
JP was forced to admit its traders behaved "recklessly", although it will be hoping the formulation agreed with the CFTC will protect it from civil actions.
In charging the bank with "employing a manipulative device", the regulator made use of new powers granted it under the 2010 Dodd Frank overhaul of financial regulation in the US. However, Republican commissioner Scott O'Malia opposed the deal saying the CFTC should have "taken more time to investigate whether the company is liable for a more serious violation, namely price manipulation".
The bank last week said legal costs totalling $9.2bn threw it into a third-quarter loss.
The bank and its chief executive, Jamie Dimon, were once Wall Street's darlings but have become embroiled in lengthy list of regulatory woes.
* The City watchdog yesterday confirmed that it has launched a formal investigation into "a number of firms" over suspected manipulation of the lightly regulated foreign exchange market.
The Financial Conduct Authority (FCA) said it was working with several regulators. The Swiss have already confirmed they are also involved.
The FCA's move is significant because a formal investigation is the first step in disciplinary proceedings against regulated firms.
- 1 Cyclist in Russia narrowly misses being hit by car and lorry
- 2 Y-40 Deep Joy: The world's deepest swimming pool
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 Syria air strikes: President Obama undergoes Damascene conversion as Isis forces America to change tack
- 5 Pink Floyd new album: Band unveil cover art for first record in 20 years
Rihanna 'nude pictures' claims emerge on 4Chan as hacking scandal continues
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
Deepika Padukone branded a 'hypocrite' by The Times Of India following anger over 'cleavage show' tweet
'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
Syria air strikes: President Obama undergoes Damascene conversion as Isis forces America to change tack
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
Labour Party conference: Ed Balls to set out plan to freeze child benefit to balance books
iJobs Money & Business
£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...
£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...