JPMorgan to pay $100 mln after admitting fault in 'London whale' trades

Washington, Oct. 17 (ANI): JPMorgan Chase and Co. (JPM) will pay a 100 million dollars penalty after admitting that it recklessly distorted prices during a series of London trades that ultimately cost the bank six billion dollars in losses.

The settlement announced by the Commodity Futures Trading Commission (CFTC) comes less than a month after JPMorgan agreed to pay 920 million dollars.

Morgan admitted fault in a deal with the Securities and Exchange Commission and other U.S. and British regulators.

According to CBS News, the CFTC said JPMorgan traders in London sold off a massive volume of derivatives at once, distorting market prices.

Derivatives are investments whose value is based on some other investment, such as oil and currencies. The market was largely unregulated before the 2008 financial crisis, the report added. (ANI)

Matches