DHAKA: US bank JP Morgan Chase agreed to pay four regulators $920m relating to a $6.2bn loss incurred as a result of the “London Whale” trades.

The settlement is the third biggest banking fine by US regulators, and the second largest by UK regulators.

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.

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 - whose chief executive Jamie Dimon once described the trading problems as a “tempest in a teacup” - had admitted the facts underlying the SEC’s charges.

Source: BBC

BDST: 0010 HRS, SEP 20, 2013
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