JPMorgan pays $100M, admits fault in London Whale scandal

JPMorgan Chase & Co. has agreed to pay $100 million US and admitted that it distorted prices in a series of trades that ended up costing the bank $6 billion in losses.
JPMorgan Chase has agreed to pay $100 million US in fines for wrongdoing that led to a $6 billion trading loss at its London office in 2012. (Mark Lennihan/Associated Press)

JPMorgan Chase & Co. has agreed to pay $100 million US and admitted that it distorted prices in a series of trades that ended up losing the bank $6 billion.

The settlement announced Wednesday by the Commodity Futures Trading Commission comes less than a month after JPMorgan agreed to pay $920 million in fines and admit fault in a deal with the Securities and Exchange Commission and other U.S. and British regulators.

The CFTC said JPMorgan traders in London sold off a massive volume of derivatives at once, distorting market prices in what has become known as the London Whale scandal.

While the CFTC settlement may be small, JPMorgan expects to pay more to regulators in the future, which is affecting the bank's bottom line.

Last week, JPMorgan reported its first quarterly loss since 2004 after setting up a massive $9.2 billion dollar reserve for legal costs including fines and settlements.

The bank is also said to be negotiating a settlement with the U.S. Department of Justice over its handling of mortgage-backed securities during the 2008 financial crisis. That could cost the investment firm $11 billion.

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