close
This ad will auto close in 10 seconds


JPMorgan fined $100 mn over `London whale` trade

Last Updated: Wednesday, October 16, 2013 - 20:48

Washington: US regulators on Wednesday fined banking giant JPMorgan Chase $100 million for manipulating trade in the "London whale" trading debacle.

The US Commodity Futures Trading Commission said that JPMorgan had agreed to pay the civil penalty to settle the 17-month probe of the 2012 "London whale" case that caused the bank USD 6.2 billion in trading losses.

JPMorgan admitted that its traders "recklessly disregarded the fundamental precept on which market participants rely, that prices are established based on legitimate forces of supply and demand," the CFTC said in a statement.

The agency, which regulates trade in derivatives and futures contracts, said it was the first time it had used a new tool provided by the Dodd-Frank financial reform that prohibits "manipulative conduct."

"As this case demonstrates, the Commission is now better armed than ever to protect the market from traders, like those here, who try to `defend` their position by dumping a gargantuan, record-setting, volume of swaps virtually all at once, recklessly ignoring the obvious dangers to legitimate pricing forces," David Meister, the CFTC`s enforcement director, said in the statement.

AFP
First Published: Wednesday, October 16, 2013 - 20:48
comments powered by Disqus