This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-24159801

The article has changed 6 times. There is an RSS feed of changes available.

Version 1 Version 2
JP Morgan makes $920m London Whale payout to regulators 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. US bank JP Morgan Chase has agreed to pay four regulators $920m (£572m) relating to a $6.2bn loss incurred as a result of 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. Under the settlement, $200m will go to the US Securities and Exchange Commission (SEC) and £138m to the UK's Financial Conduct Authority (FCA).
As part of the deal JP Morgan admitted violating US federal securities laws.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.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.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.The regulator said the bank had admitted the facts underlying the SEC's charges.
'Undermining trust'
"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.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. A further £138m will be paid to the UK's Financial Conduct Authority as part of the global settlement.
It said JP Morgan's conduct "demonstrated flaws permeating all levels of the firm: from portfolio level right up to senior management".
Tracey McDermott, the FCA's director of enforcement and financial crime, said the failings had undermined trust and confidence in the UK's financial markets.
"This is yet another example of a firm failing to get a proper grip on the risks its business poses to the market," she said.
"Senior management failed to respond properly to warning signals that there were problems.
"As things began to go wrong, the firm didn't wake up quickly enough to the size and the scale of the problems. What is worse, they compounded this by failing to be open and co-operative with us as their regulator."
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.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.