After its name has been involved in the $2 trillion illicit transactions made between 1999 and 2017, JPMorgan Chase is mentioned in another scandal.
A case from September 2019 came to light, showing a 14-count criminal indictment against three employees from JPMorgan for alleged manipulation of metal and Treasury markets. According to the papers, the employees and multiple co-conspirators participated in a conspiracy connected to a multi-year scheme to manipulate the precious metal #markets and defraud clients.
Following the case's outcome, JPMorgan Chase could be forced to admit the wrongdoing and pay a settlement fee. Rumor has it that the bank has to pay almost $1 billion in settlements. The settlement between it and various US agencies such as the Justice Department, the Commodity Futures Trading Commission, and the Securities and Exchange Commission could happen this week.
The size of the penalty could set records for spoofing*-related settlements for this type of market manipulation, but it won't restrict JPMorgan's business practices.
*Spoofing: a tactic used by traders to make many orders that they have no intention of executing; this can mislead market participants to steer prices in a specific direction. Regulators outlawed the tactic in 2010 through the Dodd-Frank Act. (Definition seen on markets.businessinsider.com).
Despite the news, JPMorgan Chase closed yesterday's trading session 0.09% lower. During today's pre-market session, it went up 0.37%.
Read more about the latest scandal in the banking sector here!
Sources: cnbc.com, businessinsider.com