JP Morgan pays regulators $920m
19 Sep, 2013
JP Morgan Chase & Co is set to pay $920 million to regulators over the $6 billion loss that was suffered amid the ‘London Whale’ trades.
Losses were built up in early 2012 at the US investment bank’s London office in derivatives trades, which also resulted in two former traders from the bank being criminally charged in the US. The two deny claims that they tried to hide their losses by lying about their trade sizes.
The four regulators due to receive money from JP include the UK’s Financial Conduct Authority, who will receive approximately $220 million.
The SEC said in a statement that there had been ‘failings’ in the bank’s senior management, adding that “JP Morgan failed to keep watch over its traders as they overvalued a very complex portfolio to hide massive losses.”