This ad will auto close in 10 seconds

JPMorgan to pay $920 mn fine in 'London whale' case

Last Updated: Thursday, September 19, 2013 - 21:40

New York: Banking giant JPMorgan Chase Thursday agreed to pay USD 920 million to settle securities law violations with US and British government agencies related to the "London whale" trading debacle.

The global settlement includes an admission by JPMorgan that it violated US securities laws.

The violations stem from the misstatement of financial results and poor internal controls over employees who were responsible for some USD 6.2 billion in trading losses last year.

The "London whale" trading violations "demonstrated flaws permeating all levels of the firm: from portfolio level right up to senior management," said the Financial Conduct Authority, the British regulator, which fined JPMorgan USD 220 million in the case.

Besides the FCA penalty, JPMorgan will pay a USD 200 million penalty to the US Securities and Exchange Commission, a USD 200 million fine to the US Federal Reserve and a USD 300 million penalty to the US Office of the Comptroller of the Currency.

The bank reportedly faces a civil investigation from the US Commodities Futures Trading Commission and a criminal probe from the US Department of Justice.

The Justice Department filed criminal charges in August against two former JPMorgan traders involved in the case.


First Published: Thursday, September 19, 2013 - 21:40
comments powered by Disqus