NPR logo

JPMorgan To Get Whale Of A Fine For Trading Losses

  • Download
  • <iframe src="https://www.npr.org/player/embed/223190981/223309074" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
JPMorgan To Get Whale Of A Fine For Trading Losses

Economy

JPMorgan To Get Whale Of A Fine For Trading Losses

  • Download
  • <iframe src="https://www.npr.org/player/embed/223190981/223309074" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

RENEE MONTAGNE, HOST:

NPR's business news begins with criminal indictments for traders.

(SOUNDBITE OF MUSIC)

MONTAGNE: A U.S. grand jury has indicted two former employees of JPMorgan Chase for their role in what's known as the London Whale trading disaster. Meanwhile, federal regulators could slap the bank with a civil fine of hundreds of millions of dollars.

NPR's Jim Zarroli has more.

JIM ZARROLI, BYLINE: JPMorgan Chase acknowledged last year that rogue traders in its London office had lost some $6 billion in derivatives trading and managed to conceal the losses from senior rank officials for weeks.

Yesterday, the two traders were indicted for securities fraud and wire fraud. Several published reports also said that the SEC and other federal regulators are about to fault the bank for inadequate internal controls and failing to supervise employees. The reports were later confirmed by a source who asked not to be named.

Officials at the bank are reportedly weighing whether to pay a fine of as much as $700 million and acknowledge wrongdoing. Often in the past, regulators have allowed financial companies to pay fines without admitting they did anything wrong. But the SEC has made clear lately that it wants to avoid such settlements. The SEC declined to comment yesterday, as did the bank.

The settlement is expected to be announced sometime this week. But it probably won't end the matter for the bank. The regulator that oversees the derivatives market, the Commodity Futures Trading Commission, has said it won't join any broader settlement and will press ahead with its own case.

Jim Zarroli, NPR News.

Copyright © 2013 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.