NEW YORK CITY: Banking giant JP Morgan Chase Thursday agreed to pay $920 million to settle securities law violations with US and British government agencies related to the “London whale” trading debacle.
The global settlement includes an admission by JP Morgan that it violated US securities laws.
The violations stem from the misstatement of financial results and poor internal controls over employees who were responsible for some $6.2 billion in trading losses last year.
The “London whale” trading violations “demonstrated flaws permeating all levels of the firm: from portfolio level right up to senior management,” said the Financial Conduct Authority, the British regulator, which fined JP Morgan $220 million in the case.
Besides the FCA penalty, JP Morgan will pay a $200 million penalty to the US Securities and Exchange Commission, a $200 million fine to the US Federal Reserve and a $300 million penalty to the US Office of the Comptroller of the Currency.
The bank reportedly faces a civil investigation from the US Commodities Futures Trading Commission and a criminal probe from the US Department of Justice.
The Justice Department filed criminal charges in August against two former JPMorgan traders involved in the case.