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.