JPMorgan Will Pay Nearly $1B to Resolve U.S. Investigations
According to a source familiar with the situation, JPMorgan Chase is close to paying almost $1 billion to resolve government investigations into the alleged manipulation of metal and Treasurys markets.
Bloomberg, which first reported the news, reveals that a settlement between JPMorgan and several U.S. agencies could come this week.
The deal would resolve investigations from the Justice Department, the Commodity Futures Trading Commission and the Securities and Exchange Commission.
New York-based JPMorgan is expected to admit wrongdoing in the settlement however the source has asid that this deal also isn’t expected to result in business restrictions on other areas of the firm.
It was last September that the case was revealed when a 14-count criminal indictment against three current or former JPMorgan employees, including the global head of base and precious metals trading, was unsealed.
The traders along with eight unnamed co-conspirators who worked at JPMorgan offices in New York, London, and Singapore, were alleged to be participating in a racketeering conspiracy in connection with a multiyear scheme to manipulate the precious metals markets and defraud customers.
Michael Nowak, a former managing director who also headed the firm’s global precious metals desk, along with Gregg Smith and Christopher Jordan, who held the title of executive director and were traders on the firm’s precious metals desk, have been named in the indictment.
Each person was charged with one count of conspiracy under the Racketeer Influenced and Corrupt Organizations Act, or RICO.
Some have cooperated with authorities but Nowak and several others in the case pleaded not guilty and seek dismissal of the charges.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.