JPMorgan To Pay $920 Mln Fine For Manipulating Precious Metals, Treasury Market


(RTTNews) – JPMorgan Chase & Co (JPM) agreed to pay a total of $920 million in penalty to settle U.S. investigations into the company’s alleged manipulation of metal and treasuries markets.

The settlement resolves investigations from the U.S. Justice Department, the Commodity Futures Trading Commission and the Securities and Exchange Commission.

The U.S. regulatory authorities investigated the firm for unfairly manipulating or “spoofing” the precious metals market.

The charges against JPMorgan and its subsidiaries were for “manipulative and deceptive conduct and spoofing that spanned at least eight years and involved hundreds of thousands of spoof orders in precious metals and U.S. Treasury futures contracts.”

“The conduct of the individuals referenced in today’s resolutions is unacceptable and they are no longer with the firm,” said Daniel Pinto, co-President of JPMorgan Chase and CEO of the Corporate & Investment Bank.

J.P. Morgan Securities admitted the findings in the SEC’s order, and agreed to pay disgorgement of $10 million and a civil penalty of $25 million, the SEC said in a statement.

Of the $920 million settlement, JPMorgan will pay $436.43 million in criminal monetary penalty, $311.74 million in restitution, and $172.03 million in disgorgement.

As per the settlement, JPMorgan has entered into a deferred prosecution agreement with the Justice Department. The agreement will expire after three years so long as the firm and its subsidiaries, JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC, fully comply with their respective obligations under the agreement.

Last year the Commodity Futures and Trading Commission fined Merrill Lynch Commodities $25 million.

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