In a legal and regulatory scandal once described by JPMorgan CEO Jamie Dimon as a tempest in a teapot, the bank agreed in October to pay a $100 million fine and admit wrongdoing, which is an unprecedented move the bank greatly sought to avoid.
In filing and settling the charges against JPMorgan Chase, the Commodity Futures Trading Commission (CFTC) stepped into a future sure to bring more aggressive action against businesses engaged in reckless and illegal financial conduct. JPMorgan Chase was accused of employing manipulative trading strategies with disregard to the consequences on legitimate market forces.
With a legal reserve of $23 billion set aside to handle incoming actions related to the debacle now known as the London Whale episode, the trouble for JPMorgan Chase is not ending anytime soon. Accused of massive market manipulation from its London office, the fiasco has led to the following actions:
Mr. Dimon now notes, “[s]ince these losses occurred, we have made numerous changes that have made us a stronger, smarter, better company.”
If you are facing regulatory investigation, seek aggressive, knowledgeable legal representation in New York.