Wednesday, November 26, 2014

Justice Department targets J.P. Morgan Chase forex business in criminal probe

A few years ago I commented on the fact that the leverage upto 1000 times for forex transactions was a sure bet to lead to trouble. And look at that here we are investigations galor. Aivars Lode

J.P. Morgan Chase & Co.’s foreign-exchange trading business is the target of a criminal probe by the U.S. Department of Justice, said a company filing with the SEC on Monday.

The bank is also under civil investigation by U.S. banking regulators, the Commodity Futures Trading Commission, the U.K. Financial Conduct Authority and other foreign government authorities, according to the 10-Q filing with the Securities and Exchange Commission.
“These investigations are focused on the firm’s spot FX trading activities as well as controls applicable to those activities,” the company said in the filing. J.P. Morgan Chase said it continues to cooperate with all authorities and is in discussions with the Justice Department as well as regulatory and civil enforcement authorities “about resolving their respective investigations with respect to the firm,” the filing said. “There is no assurance that such discussions will result in settlements.”
J.P. Morgan Chase is the third bank to announce it’s under investigation over its forex practices in just over a week. Last week, Citigroup said the Justice Department, CFTC and FCA were looking into its FX program, and UBS said its FX business was under a Justice Department probe.

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