The bank may pay at least $750 million to settle inquiries into risky derivative trades at its London office that led to more than $6 billion in losses, according to Bloomberg News.
The settlements are expected to be announced later this week.
The U.S. Securities and Exchange, the Office of the Comptroller of the Currency and other regulators are expected to find the company liable for inadequate risk control.The bank is expected to admit wrongdoing as part of its settlement with the SEC, according to a report from Dow Jones. JPMorgan declined to comment on the press reports. The U.S. Department of Justice last month filed criminal charges against two of the bank's former traders, Javier Martin-Artajo and Julien Grout, with four counts of conspiracy, wire fraud, faking books and records and causing JPMorgan to make "false and misleading statements" in two securities filings. The trader who was directly responsible for the trades, Bruno Iksil, also known as the London Whale because the size of his trades were so large they were distorting the market, was not charged. Last week, JPMorgan CFO Marianne Lake said its reserve for legal losses could exceed $1.5 billion in the third quarter, offsetting the benefits from improving credit quality. According to a recent report by the Wall Street Journal, the bank faces $4 billion in compliance costs and is adding more than 5,000 employees to clean up its risk and compliance problems. -- Written by Shanthi Bharatwaj New York. >Contact by Email. Follow @shavenk
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV