JPMorgan Chase & Co. is preparing to pay a fine of nearly $ 1 billion to settle claims by the US authorities related to manipulation of futures for precious metals and Treasury securities, Bloomberg reported, citing informed sources.
This agreement could end investigations currently under way by the US Department of Justice, the US Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) over suspicions that some of the bank's traders have used so-called “spoofing” (spoofing), that is, they placed significant orders that could affect the market dynamics, initially intending to cancel them.
Spoofing can create spikes in demand for securities that are based on false data. This practice was declared illegal in the United States in 2010.
A possible fine could be a record for this kind of manipulation, and the deal could be announced this week, the sources said. The settlement agreement should not lead to any restrictions on JPMorgan's operations, they said. The bank is expected to admit wrongdoing.
Justice Department, CFTC, SEC and JPMorgan officials declined to comment.
JPMorgan shares declined on Thursday. Since the beginning of the year, the bank's capitalization has fallen by 33.8% to $ 282.6 billion.