JPMorgan to Pay $65 Million Fine for Dollar Benchmark Manipulation
June 18 2018 - 3:17PM
Dow Jones News
By Gabriel T. Rubin
WASHINGTON -- JPMorgan Chase & Co. agreed to pay a $65
million fine to settle claims that it tried to manipulate a global
interest rate benchmark, the latest fine levied by U.S. regulators
to punish crisis-era manipulation schemes by large banks.
The Commodity Futures Trading Commission said JPMorgan employees
between 2007 and 2012 made false reports and attempted to
manipulate the U.S. Dollar International Swaps and Derivatives
Association Fix, a benchmark that is referenced in many derivatives
products.
The regulator found that during that five-year period, JPMorgan
employees would attempt to manipulate the reference rate by
"bidding, offering, and executing transactions in targeted interest
rate products" around the time of day when the reference rate was
fixed.
The settlement with the CFTC makes JPMorgan just the latest
major bank to settle charges of alleged interest-rate manipulation
in recent years, as the CFTC noted in its announcement of the
settlement.
"This matter is one in a series of CFTC actions that clearly
demonstrates the Commission's unrelenting commitment to root out
manipulation from our markets and to protect those who rely on the
integrity of critical financial benchmarks," CFTC Enforcement
Director James McDonald said in a statement.
"We're pleased to have this matter behind us," a JPMorgan
spokeswoman said.
The CFTC has imposed around $6 billion in penalties against
banks and brokers to address the rigging of benchmarks such as
Libor and ISDAFIX.
Barclays PLC, Citigroup Inc., Goldman Sachs Group Inc., Deutsche
Bank Securities Inc., and Royal Bank of Scotland Group PLC have
settled similar cases with the CFTC for larger amounts of
money.
Write to Gabriel T. Rubin at gabriel.rubin@wsj.com
(END) Dow Jones Newswires
June 18, 2018 15:02 ET (19:02 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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