JPMorgan Will Pay $920M in London Whale Fines
Company will admit wrongdoing
By Newser Editors and Wire Services
Posted Sep 19, 2013 8:51 AM CDT
This Monday, Sept. 29, 2008, file photo, shows a picture of financier J.P. Morgan across the street from the New York Stock Exchange.   (AP Photo/Stephen Chernin)

(Newser) – JPMorgan Chase & Co. will pay $920 million and admit wrongdoing in a settlement with US and British regulators over the $6 billion "London Whale" trading loss last year that tarnished the bank's reputation. The UK's Financial Conduct Authority fined the company $220 million, while the British Securities and Trade Commission fined it $200 million and required JPMorgan to admit wrongdoing. US regulators account for the other $500 million.

Weak internal controls at the biggest US bank enabled traders at its London operation to assign inflated values to trades and to cover up losses as they ballooned. Two JPMorgan traders face criminal charges of falsifying records to hide the losses. Investors appear to be shrugging at the fines; JPMorgan stock rose in premarket trading today, but as of this writing is down slightly.

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Showing 3 of 12 comments
HonkUSA
Sep 20, 2013 3:53 AM CDT
This happens to the 'BIG BANKS' all the time , but NOBODY is ever held accountable !. AND , who's money do you think they use to pay these hefty fines ?. Ugh , it probably comes out of the CEO's millions of bonuses , which he gets for losing other peoples money and assets . OH YEAH ... I AM SURE !.
JT119
Sep 19, 2013 1:50 PM CDT
There are crimes being committed on grand scales but no one is going to jail, these entities, banks and insurance companies that are run by people that are committing crimes I would argue against humanity which is not much different from robbing, killing and maiming people which sometimes result from their actions. but as I said earlier, when they are found guilty and pay a fine of $900,000,000 they made $9000,000,000. that put to rest the old adage "CRIME DOESN'T PAY"
Scaramouche
Sep 19, 2013 10:49 AM CDT
Let's consider this: your corporation basically steals billions of dollars. After an outcry has arisen in protest, the various governments involved fine the corporation a pittance of the value of the theft. So it's basically a tax on the theft. Do you stop such behavior afterwards? Of course not. It's too profitable. Do the people really responsible go to jail? Of course not. They're too profitable to the governments. Some low-level employees are tossed to the wolves, and all moves on. Am I the only one awake on this planet?