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JPMorgan to Pay More than $700 Million in Fines Over London Whale: Reports

Stocks in this article: JPM

NEW YORK ( TheStreet) -- JPMorgan Chase (JPM) is close to reaching a settlement with multiple regulators over the "London Whale" trading losses, according to press reports.

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.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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