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Market manipulation: JPMorgan will have to pay 920 million

(New York) US bank JPMorgan Chase on Tuesday agreed to pay $ 920 million for manipulating prices in the precious metals and treasury markets, the largest financial sanction ever imposed in such a case .

Posted September 29, 2020 at 2:28 PM

Juliette MICHEL
Agence France-Presse

The deal makes up for lawsuits filed by the Department of Justice (DoJ) and the US stock and commodities market gendarmes, the SEC and CFTC, regulators said in separate statements.

They accuse the bank's brokers, including department heads, of manipulating the prices of gold, silver, platinum and palladium and those of treasury bills for at least eight years, placing tens of thousands of orders that they had no intention of complete, a practice known in English as & # 39; spoofing & # 39 ;.

They thus misrepresented the market to other market participants. real supply and demand in the market and took advantage of it to make money or avoid losses.

The accused events ran from 2008 to 2016 at the offices of the New York, London and Singapore founding, the first US bank in terms of assets. [19659004] Authorities also criticize JPMorgan for failing to act appropriately to end these practices "despite numerous warning signs," according to a CFTC press release.

According to this office, the fine was imposed. by the bank is the largest ever inflicted in a "spoofing" case.

It includes damages paid to victims and reimbursement of profits JPMorgan has made as a result of these fraudulent practices.

"Gravity of the infringements"

Its importance "reflects the nature and gravity of the bank's breaches and represents an important step in the ministry's ongoing efforts to ensure the integrity of public procurement, which is essential to our financial system," said one. official of the ministry. Justice in the press release.

The penalty is also severe because JPMorgan had already admitted to engaging in manipulative and deceptive trading practices in the foreign exchange market in 2015, the ministry adds.

The practice of "Spoofing" is "pure and simply illegal," emphasized CFTC President Heath Tarbert for his part.

According to him, the amount of the fine shows that his agency is willing to "be harsh on those who infringe rules voluntarily, regardless of who they are."

However, the authorities recognize that the bank led by Jamie Dimon cooperated in their investigations and devoted considerable resources to prevent a recurrence of such practices.

The Ministry considered in this regard that it was not necessary to impose control over the company by an independent auditor.

] JPMorgan Chase had already warned in some cases official documents that it was collaborating with investigations in the United States into its brokerage practices in the markets of metals and financial instruments such as T-bills, and that it was discussing with the authorities to bring it to an end.

She believes that the agreement should not disrupt the service to her customers.

The accused's conduct n is "unacceptable", said investment banking division boss Daniel Pinto on Tuesday, commenting that & # 39; they were no longer with the company.

Two brokers have pleaded guilty and lawsuits are still pending against four other bank employees.

The stock fell 0.66% mid-session to the New York Stock Exchange on Tuesday, then a slightly down market.

Written by Rahis

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