NEW YORK (AP) — JPMorgan Chase & Co. will pay $920 million and admit wrongdoing in a settlement with U.S. and British regulators over the $6 billion “London Whale” trading loss last year that tarnished its reputation.
The combined amount JPMorgan is paying the three U.S. regulators and the U.K. Financial Conduct Authority adds up to one of the largest fines ever levied against a financial institution.
The U.S. Securities and Exchange Commission fined the bank $200 million and required it to admit wrongdoing. The Federal Reserve Board imposed a $200 million penalty, while the Office of the Comptroller of the Currency set a $300 million fine.
The British regulator fined the company $220 million.
The regulators say the largest U.S. bank failed to properly supervise traders in its London operation, allowing them to assign inflated values to trades and cover up losses as they ballooned.
Two of the traders are facing criminal charges of falsifying records to hide the losses.