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JP Morgan makes $920m London Whale payout to regulators | |
(35 minutes later) | |
US bank JP Morgan Chase has agreed to pay four regulators $920m (£572m) relating to a $6.2bn loss racked up over the "London Whale" trades. | |
Under the settlement, $200m will go to the US Securities and Exchange Commission and $220m to the UK's Financial Conduct Authority. | |
As part of the deal JP Morgan admitted violating US federal securities laws. | |
Traders at JP Morgan's London office built up huge losses in derivatives trades at the beginning of last year. | |
Two former JP Morgan traders face criminal charges in the US relating to the case. | |
They deny charges of lying about the size of their trades in order to hide their mounting losses. | They deny charges of lying about the size of their trades in order to hide their mounting losses. |
In a statement, the SEC said there had been failings in JP Morgan's internal controls and in senior management. | In a statement, the SEC said there had been failings in JP Morgan's internal controls and in senior management. |
The regulator said the bank had admitted the facts underlying the SEC's charges. | |
"JP Morgan failed to keep watch over its traders as they overvalued a very complex portfolio to hide massive losses," said George Canellos, co-director of the SEC's division of enforcement. | "JP Morgan failed to keep watch over its traders as they overvalued a very complex portfolio to hide massive losses," said George Canellos, co-director of the SEC's division of enforcement. |
The Wall Street firm, one of the biggest investment banks in the world, is paying $300m to the US Office of the Comptroller of the Currency (OCC), and $200m will go to both the Securities and Exchange Commission (SEC) and the US Federal Reserve. | |
A further $220m will be paid to the UK's Financial Conduct Authority as part of the global settlement. | |
The London Whale was the name given to then-JP Morgan derivatives trader Bruno Iksil, who is believed to have racked up the losses and is now co-operating with authorities in criminal cases against other traders. |