US regulators on Wednesday fined banking giant JPMorgan Chase $100 million for manipulating trade in the “london whale” trading debacle.
The US Commodity Futures Trading Commission said that JPMorgan had agreed to pay the civil penalty to settle the 17-month probe of the 2012 trading debacle that lost the bank $6.2 billion.Shares in JPMorgan, a Dow component, were up 2.9 per cent at $53.84 in late-morning trade in New York.
JPMorgan admitted that its traders “recklessly disregarded the fundamental precept on which market participants rely, that prices are established based on legitimate forces of supply and demand,” the CFTC said in a statement.
The agency, which regulates trade in derivatives and futures contracts, said it was the first time it had used a new tool provided by the Dodd-Frank financial reform law that prohibits “manipulative conduct.”