JPMorgan sets aside $6 billion to cover potential fines in currency probe

JP Morgan follows banking rivals RBS, Lloyds and HSBC in putting huge sums aside to tackle the investigations

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The Independent Online

JPMorgan Chase has set aside almost $6bn (£3.8bn) to cover legal costs amid the US Justice Department’s probe into its foreign exchange arm.

It had previously put aside $4.6 billion but raised its loss estimate as it revealed the probe will focus on its spot foreign-exchange trading activities and controls.

London is home to approximately 40 per cent of the world’s foreign exchange trading. JP Morgan follows banking rivals RBS, Lloyds and HSBC in putting huge sums aside to tackle the investigations.  

The bank said it was co-operating with the investigations and was in talks with the justice department and civil enforcement authorities, but that there was "no assurance that such discussions will result in settlements".

It is alleged that foreign exchange traders colluded through online chatrooms to set foreign exchange rates.

The UK’s Serious Fraud Office and Financial Conduct Authority are among those investigating the matter.

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