Jpmorgan Fx Plea Agreement
On Monday, 20th September 2021, JPMorgan Chase & Co. admitted to wrongdoing in a Foreign Exchange (FX) fraud case before the US Department of Justice (DOJ) and agreed to pay $1.1 billion in fines. This plea agreement is one of the largest fines ever by a US bank charged by the DOJ.
The fraud case exposed JPMorgan`s illegal practice of manipulating currency markets and its failure to self-report the issue to the proper authorities. The bank was found guilty of manipulating benchmark exchange rates for years, which ultimately affected investors and made them pay more for their transactions.
Under the plea agreement, JPMorgan admitted that its traders rigged the market by coordinating with traders at other firms in secret chat rooms to artificially move the prices of currency through „front-running“ trades. The traders were manipulating the markets in such a way that cost customers more than they should have paid, and JPMorgan pocketed the profits.
The DOJ`s investigation into JPMorgan`s FX manipulation scheme was launched in 2015. The plea agreement marks the culmination of a six-year investigation and settlement negotiations. The settlement amount is reportedly composed of two parts: $550 million in fines will be paid to the DOJ, and $543 million will go to the Commodity Futures Trading Commission.
JPMorgan has since expressed regret over the illegal activity, stating that it had taken extensive measures to improve its compliance and controls in the years since the wrongdoing. The bank also said that it has terminated several employees connected to the illegal activity.
The bank`s admission of wrongdoing has come at a time when banks around the world are facing increasing scrutiny over their conduct. The DOJ has been actively investigating several other banks in the FX manipulation scandal, including Citigroup, Barclays, and UBS. The industry`s regulators have also imposed heavy fines on several banks over the past decade for manipulation and other abuses.
In conclusion, JPMorgan has reached a historic plea agreement with the DOJ over Foreign Exchange fraud. The bank has admitted to wrongdoing and agreed to pay a $1.1 billion fine, one of the highest ever charged by a US bank. This plea agreement signals the ongoing crackdown on banks` unlawful activities and underscores the importance of regulatory oversight in the financial industry.