JPMorgan to Pay Record $920M for Spoofing Scheme

Over the course of eight years, JPMorgan traders placed tens of thousands of trade orders to manipulate market prices

We wish this were about Jamie Dimon making his SNL debut on Saturday but, alas, we’ll settle for some Oscar-worthy corporate conniving. Yesterday, the Commodity Futures Trading Commission announced a mammoth $920 million settlement with America’s largest bank for manipulating markets via “spoofing.” 

The crime: Over eight years, JPMorgan traders manipulated prices in global commodities markets by placing tens of thousands of orders for precious metals and Treasuries…only to cancel them later. The bank profited while other traders lost $300+ million.

  • A trio of government agencies dug into the spoofing allegations, including the DOJ, which used a 1970s-era racketeering and corruption law typically used to pursue the Mafia. 

The time: To understand just how big JPMorgan’s penalty is…in the last six years, financial institutions have collectively paid over $1 billion for spoofing cases. JPMorgan admitted to messing up and, as part of a deferred prosecution, will cooperate with the feds to prove it’s cleaning up its act.

+ While we’re here: Bloomberg takes you inside the corporate drama that unraveled the criminal racketeering conspiracy and took down one of JPMorgan’s star executives.

Via Morning Brew

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