JP Morgan to pay USD100 million to settle Whale trades charges

October 16
1:57 PM 2013

JPMorgan Chase & Co had agreed to pay USD100 million over charges filed against the company regarding the disastrous "London Whale" trade. JP Morgan had also admitted that its traders acted recklessly, said the Commodity Futures Trading Commission (CFTC) on Wednesday.

Last month, JP Morgan had paid USD920 million to four other British and US regulators. The settlement was made to resolve civil probes regarding the bank's USD6.2 billion derivative losses that involved its chief investment office.

The new CFTC case had charged the bank with violation on prohibition on manipulative conduct when it traded in the credit default swaps at issue. The CFTC said that the lender had sold a huge volume of swaps in a concentrated period wherein the traders at JP Morgan had recklessly disregarded the precept that legitimate market forces should set prices.

According to Republican Commissioner Scott O'Malia, "I am concerned that in a rush to join in on a settlement brokered by other regulators, the Commission may be missing the opportunity to pursue allegations of greater wrongdoing."

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