Newscast Media WASHINGTON—US regulators have slapped a hefty fine on banking
giant JPMorgan Chase for its role in the “London whale” trade manipulation scandal.
The lender admitted its traders had acted recklessly and caused huge damage.
The US Commodity Futures Trading Commission (CFTC) announced Wednesday it was
fining JPMorgan Chase $100 million (74 million euros) for large-scale manipulation of
It said the bank had agreed to pay the civil penalty to settle a 17-month probe
into the 2012 case that caused the lender $6.2 billion in trading losses by dumping a
huge number of swaps at the same time, thus distorting the market.
JPMorgan admitted its traders “recklessly disregarded the fundamental precept on
which market participants rely that prices are established based on legitimate forces
of supply and demand.”
CFTC, which regulates trade in derivatives and futures contracts, pointed out it had
for the first time used a new tool disclosing manipulative conduct.
The deal between CFTC and JPMorgan comes less than a month after the lender
agreed to pay $920 million in a settlement with the Securities and Exchange
Commission (SEC) and other US and British regulators.
Overall, probes into the scandal have not come to an end yet, as Manhattan
prosecutors still carry out additional investigations and SEC officials look into
individual traders’ alleged misconduct.
Source: Deutsche Welle