JPMorgan Reaches Settlement with CFTC on Whale Trades

Bank to pay $100 million, bringing the total settlements from botched derivatives trades to more than $1 billion.

JPMorgan Chase & Co., the largest U.S. bank, agreed to pay $100 million to resolve Commodity Futures Trading Commission claims that the company’s London traders last year deployed a reckless strategy in derivatives.

The accord, which stems from the bank’s chief investment office’s conduct on Feb. 29, 2012, brings JPMorgan’s settlements from the London Whale trades to more than $1 billion, the CFTC said today in a statement.

Dismissed Reports

In April last year, JPMorgan Chief Executive Officer Jamie Dimon initially dismissed reports that the derivatives bets were distorting markets, calling the attention a “tempest in a teapot.” The bank disclosed mounting losses a month later.

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