JPMorgan Chase to pay $920M in settlement

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Associated Press

Posted on September 19, 2013 at 9:00 AM

Updated Thursday, Sep 19 at 9:02 AM

NEW YORK (AP) — JPMorgan Chase & Co. will pay $920 million and admit wrongdoing in a settlement with U.S. and British regulators over the $6 billion "London Whale" trading loss last year that tarnished its reputation.

The U.K.'s Financial Conduct Authority fined the company $220 million, the British Securities and Trade Commission fined $200 million and required JPMorgan to admit wrongdoing.

The U.S. Federal Reserve Board imposed a $200 million penalty, while the Office of the Comptroller of the Currency set a $300 million fine.

Weak internal controls at the biggest U.S. bank enabled traders in 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.

The stock rose in premarket trading Thursday.

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