JPMorgan Chase & Co has reached an agreement with the Commodity Futures Trading Commission (CFTC) to pay US$100 million to settle charges associated with the bank’s London Whale trading scandal.
JPMorgan has agreed its employee’s actions constituted a manipulative device and the CFTC will use the new powers granted to it by the Dodd-Frank financial law and fine JPMorgan for the reckless use of manipulative devices.
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The deal will not conclude all of the investigations of the transactions managed by Bruno Iksil, known as the London Whale due to the size of his bets.
The US Justice Department will continue to run parallel probe against the case although the CFTC probe will move JPMorgan closer to drawing a line under the London whale scandal.
JPMorgan unveiled last month that it has obtained a Wells notice from the CFTC to propose enforcement action against the bank.
The deal, which will bring the bank’s total settlements to more than US$1 billion could come as soon as this week and will stipulate the JPMorgan admit its transactions amounted to illegal market behaviour.
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By GlobalDataJPMorgan agreed last month to pay US$920 million to resolve the US and the UK related probes into its internal controls and handling of the trades, which inflicted at least US$6.2 billion in losses last year.
