Regions

JP Morgan and CFTC reach settlement accord

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October 15
10:58 PM 2013

A settlement agreement was reached between JP Morgan Chase and the Commodity Futures Trading Commission regarding the bank's 'London Whale' trading scandal. According to media reports, the settlement amount reached USD100 million.

The US derivatives regulator, in its exercise of provided powers under the Dodd-Frank Act, would impose fines on the bank for the so called 'reckless use of manipulative devices.' This was first reported byt he Wall Street Journal who had cited individuals familiar with the discussion.

JPMorgan reported last month of its receipt of a Wells notice from the CFTC indicating the regulator intends to recommend the institution of enforcement action against the bank. Wells notices are notification given to investigated firms or individuals as to the discovery of infractions.

The said settlement may be formalized as early as this week and would include requiring the bank to admit some wrongdoing on the matter. This was reported in the New York Times, who cited comments from individiuals briefed on the progress of negotiations. 

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