JPMorgan Reaches Settlement with US Regulators for FX Manipulation

JPMorgan Chase & Co’s long-awaited regulatory finality has come to a close having settled a US antitrust lawsuit for rigging foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term that is estimated at less than $1 billion.

The 2014 calendar year was consumed with ongoing allegations and fallout strategies from many of the world’s leading financial institutions. A total of 12 banks were accused of rigging the foreign exchange market, collectively constituting a $5 trillion-a-day market.

As a result of the Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term, JPMorgan, in essence, becomes the first bank under investigation to formally settle with US regulatory authorities via the U.S. District Court in Manhattan. Presently, the exact terms or settlement figures are unknown though JPMorgan’s penalty is expected to be less than $1 billion in fines.

Along with JPMorgan, other defendants under investigation include Bank of America Corp, Barclays Plc, BNP Paribas SA, Citigroup Inc, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc, HSBC Holdings Plc Morgan Stanley, Royal Bank of Scotland Group Plc and UBS AG.

According to Michael Hausfeld, a lawyer for the investors, in a recent phone interview to Reuters, "The settlement is a responsible step by Chase in addressing its involvement. It is a beginning with respect to the accountability of other banks engaged in the same trading." In a separate statement, the settlement was confirmed by JPMorgan's spokesman, Brian Marchiony.

It remains to be seen what fate the remaining 11 banks have with regards to settlements, though this does not appear to be the last that we have heard from US regulators on the issue.