JPMorgan Chase & Co. (NYSE:JPM) has reached a settlement with antitrust regulators in the U.S in a case in which it was accused of rigging prices in the foreign exchange market. Bloomberg’s Francine Lacqua reports that the bank has agreed to pay up to $100 million as part of the settlement.
The settlement marks an unusual quick resolution for civil lawsuits but also signals JPMorgan’s desire and wish to put the matter to rest. The bank is reported to have agreed on a $100 million settlement after talks mediated by Kenneth Feinberg who is also overseeing a compensation package involving General Motors Company (NYSE:GM) faulty cars.
“JPMorgan Chase & Co. (NYSE:JPM) was one of more than a dozen banks sued by institutional investors in 2013 over the price fixing. In November JPMorgan agreed to pay $1 billion to resolve foreign exchange rate investigations by regulators in the U.S. the U.K and Switzerland,” said Mrs. Francine Lacqua.
The settlement now awaits court approval as settlement papers are poised to be filed with the court later in the month. Big hedge funds and public pension funds had accused JPMorgan Chase & Co. (NYSE:JPM) among other 12 banks of conspiring since 2003 in chat room instant messages to manipulate Closing Spot Rates.
The complainants had argued that the banks resorted to using pseudo names such as The Cartel to swap confidential orders, as well as set prices through manipulative tactics such as “front running. The lawsuit had also alleged that 12 banks held 84% of currency market share trading representing 98% of U.S. spot volume.
Some of the other banks entangled in the lawsuit include Bank of America Corp (NYSE:BAC), Citigroup Inc. (NYSE:C) and Goldman Sachs Group Inc. (NYSE:GS). All of the banks entangled in the case are reported to have filed a motion to dismiss the lawsuit in May, with the U.S District Court yet to rule on the same. JPMorgan Chase & Co. (NYSE:JPM) has reportedly paid $660 million in a $4.3 billion lawsuit involving the forex markets in which authorities in the U.S, U.K and Switzerland are reportedly carrying out investigations.
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