JP Morgan Fined Nearly $1Billion For Market Manipulation

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JP Morgan’s $920 Million Fine

JP Morgan Chase & Co have admitted to wrongdoing and market manipulation and agreed to a massive fine of nearly $1 Billion.

In the past, we have covered how various banks and their traders have been accused of manipulating trades (including in the value of the Rand).

Read that Story Here: https://debtfreedigi.co.za/banks-in-trouble-at-competition-commission/

Now, after years and years of investigations and prosecution, JP Morgan have agreed to take responsibility for the actions of their traders who colluded with others to manipulate futures trading on the stock market.

‘JP Morgan have agreed to take responsibility for the actions of their traders who colluded with others to manipulate futures trading on the stock market’

Particularly the charges they have agreed to settle relate to “spoofing” in connection with the bank’s precious metals desk and treasuries desk. The charges covered 8 years of bad behaviour. The US Government says that 5 former JP Morgan staff members executed thousands of deceptive trades during that time. They also colluded with other traders from other banks to manipulate the value of shares, futures and commodities.

JP Morgan will settle the matter with a record-breaking $920 Million.

What Exactly is Spoofing?

The practice of spoofing involves creating a flood of orders in the derivatives markets that the traders never actually intend to follow through with. These orders are later cancelled but only after other traders have been manipulated into following suit and placing similar orders.

3 other very serious and potentially expensive counts (or charges) have been set aside by the US Commodity Futures Trading Commission (CFTC) as long as the bank cooperates and submits some reports and makes some changes internally. JP Morgan have agreed to these terms and the fine will settle the matter as long as they meet the requirements of the commission over the next 3 years.

Manipulating the Rand

Around the world, other bodies such as South Africa’s Competition Commission are also pursuing JP Morgan and other banks over these crimes which even saw currencies such as the Rand take massive knocks in a short period that never recovered. As these matters are settled elsewhere it gives impetus to the local cases against the banks involved who may then face further fines (or be forced to settle as the evidence of wrongdoing is shared internationally).