JPMorgan to admit wrongdoing in London Whale debacle
Just one month after JPMorgan paid out $920 million to quell 4 regulatory probes into its $6.2 billion in derivative losses, the bank is facing another fine.
In this September file photo people walk past the JPMorgan Chase & Co. headquarters on Park Avenue in New York. The bank is required to pay another fine in the London Whale derivatives trading scandal.
AP Photo/Kathy Willens
WASHINGTON
The London Whale is the gift that keeps giving for regulators.
JPMorgan Chase & Co has agreed to pay the latest in a string of fines for the disastrous trades and admit wrongdoing, this time in a settlement with the U.S. Commodity Futures Trading Commission.
The bank agreed to pay $100 million and admit its traders acted recklessly, the CFTC said on Wednesday. The bank was instructed to send the funds to accounts receivable at the CFTC's division of enforcement.
The settlement follows one month after it paid $920 million to four other U.S. and British regulators to resolve probes of the bank's $6.2 billion in derivative losses involving its chief investment office.
The episode has proven to be one that just about every regulator the bank deals with has wanted to investigate and levy fines.
The Justice Department, even after filing criminal charges against two former JPMorgan traders who allegedly helped conceal the losses, is still investigating whether to bring any action against the bank.
"We are pleased to be able to put behind us another aspect of the CIO (chief investment office) trading matter by the resolution of the CFTC investigation," JPMorgan spokesman Joseph Evangelisti said.