(Reuters) – JPMorgan Chase & Co. has agreed to pay more than $ 920 million and acknowledged flaws in regulating federal U.S. market manipulation probes for its trading in metal futures and government securities, U.S. officials said Tuesday.  The landmark with several agencies lifts a regulatory shadow that has hung over the bank for several years and marks a signature win for the government's efforts to combat illegal trading in the futures and precious metals market.
JPMorgan will pay $ 436.4 in fines, $ 311.7 million in repayments and more than $ 172 million in redundancies, the Commodity Futures Trading Commission said on Tuesday, the largest settlement ever introduced by the derivatives regulator.
Between 2008 and 201
This manipulative practice, which is designed to create an illusion of demand, or lack thereof, is known as "spoofing."
Some of the trades were done on JPMorgan's own account, while sometimes traders manipulated the market to facilitate trades by hedge fund clients, the CFTC said. The bank failed to identify, investigate and stop the behavior, even after a new monitoring system flagged problems in 2014, the agency said.
"The behavior of individuals referred to in today's resolutions is unacceptable and they are no longer fixed," said Daniel Pinto, co-chair of JPMorgan and CEO of Corporate & Investment Bank.
He added that the bank had invested "significant resources" in strengthening its internal policies for compliance, monitoring systems and training programs. .
It also agreed to pay $ 35 million. to settle related fees with the Securities and Exchange Commission, even if the bank's payment to the CFTC would offset that fine, it said.
In an unusual concession, JPMorgan also acknowledged inaccuracies in agreeing to the SEC and Justice Department settlements.
"This record-breaking enforcement action demonstrates the CFTC's commitment to be tough on those who intentionally violate our rules, no matter who they are. Attempts to manipulate our markets are not tolerated," said CFTC President Heath Tarbert. The Ministry of Justice has sought to falsify in recent years using sophisticated data analysis tools to detect potential inaccuracies that it could not previously detect.
Reuters reports that the agency began using technologies it originally developed to detect health fraud systems
"The idea was: let's mine this data source to see who the worst actors are," said Robert Zink, a Supreme Court official who helped lead effort, to Reuters in May.
The agency has already indicted six JPMorgan traders for having imputed metal futures between 2008 and 2016. On Friday, however, two former Deutsche Bank AG traders were found guilty by a federal jury of counterfeiting, the agency said. Catalog