JPMorgan has agreed to pay about $100m to resolve the Commodity Futures Trading Commission’s probe into the firm’s botched derivatives bets last year, according to people briefed on the matter.
Bloomberg reports that the deal, which would bring the bank’s total settlements in the episode to more than $1bn, may be announced as early as this week, the people said, asking not to be named because the talks were confidential.
The accord would resolve a CFTC assertion that the trading amounted to a 'manipulative device', the people said.
JPMorgan agreed last month to pay $920m to resolve related U.S. and U.K. probes into its internal controls and handling of the trades, which inflicted at least $6.2bn in losses last year. The New York-based firm said at the time that the CFTC also threatened to bring a case. That inquiry had looked into whether the trades manipulated markets, a person with knowledge of the matter said then.
The accords don’t end all of the investigations of the transactions managed by Bruno Iksil, the Frenchman known as the London Whale because of the size of his bets. The Securities and Exchange Commission has said its inquiry remains open while the U.S. Justice Department runs a parallel probe. Iksil, who prosecutors have said is cooperating with their case, hasn’t been charged.
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