JPMorgan Chase has reportedly reached an agreement with regulators to pay $100 million to settle charges over a trading scandal.
JPMorgan Chase has reached an agreement with the Commodity Futures Trading Commission to pay $100 million to settle charges related to the bank's "London Whale" trading scandal, according to media reports.
The U.S. derivatives regulator is expected to leverage new powers granted to it by the Dodd-Frank financial law and fine JPMorgan for the reckless use of so-called manipulative devices, the Wall Street Journal reported, citing people familiar with the matter.
JPMorgan disclosed last month that it had received a Wells notice from the CFTC and that the regulator intended to recommend enforcement action against the bank.
The CFTC settlement could come as soon as this week and would include the bank admitting some wrongdoing, the New York Times reported, citing people briefed on the negotiations.
The bank last month paid a total of $920 million in penalties to four U.S. and British regulators to resolve the biggest civil probes of the bank's $6.2 billion Whale derivative losses.
Last week, JPMorgan reported its first quarterly loss since 2004 and said it had set aside $23 billion to cover legal issues.
First published October 15 2013, 4:53 PM