Article: JPMorgan to pay $920 million for manipulating precious metals, treasury market

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JPMorgan to pay $920 million for manipulating precious metals, treasury market

Abhishek Manikandan, Michelle Price, 29 September 2020

(Reuters) – JPMorgan Chase & Co has agreed to pay more than $920 million and admitted to wrongdoing to settle federal U.S. market manipulation probes into its trading of metals futures and Treasury securities, the U.S. authorities said on Tuesday.

The landmark multi-agency settlement lifts a regulatory shadow that has hung over the bank for several years and marks a signature victory for the government’s efforts to clamp down on illegal trading in the futures and precious metals market.

JPMorgan will pay $436.4 million in fines, $311.7 million in restitution and more than $172 million in disgorgement, the Commodity Futures Trading Commission (CFTC) said on Tuesday, the biggest-ever settlement imposed by the derivatives regulator.

Between 2008 and 2016, JPMorgan engaged in a pattern of manipulation in the precious metals futures and U.S. Treasury futures market, the CFTC said. Traders would place orders on one side of the market which they never intended to execute, to create a false impression of buy or sell interest that would raise or depress prices, according to the settlement.

This manipulative practice, which is designed to create the illusion of demand, or lack thereof, is known as “spoofing.”

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Article: JPMorgan Admits Wrongdoing In Illegal Trading Allegations, Will Pay Record $920 Million To Regulators

Article - Media, Publications

JPMorgan Admits Wrongdoing In Illegal Trading Allegations, Will Pay Record $920 Million To Regulators

Sergei Klebnikov,  29 September 2020

JPMorgan Chase will pay a record $920 million to resolve a criminal investigation by three federal agencies over its role in the alleged manipulation of precious metal and Treasury markets, federal regulators said on Tuesday.

JPMorgan agreed to a settlement that resolves investigations by the Justice Department, Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

As part of the deal, the bank will admit to wrongdoing and pay a record fine of $920 million, according to a statement from the CFTC on Tuesday. Continue reading “Article: JPMorgan Admits Wrongdoing In Illegal Trading Allegations, Will Pay Record $920 Million To Regulators”