JPMorgan Admits It Broke Securities Laws

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Sept. 19 (Bloomberg) -- Bloomberg’s Dawn Kopecki reports on JPMorgan agreeing to pay $920 million in fines and admitting to violating federal securities laws relating to the “London whale trade.” She speaks on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Some big news in big banking today -- jpmorgan is paying nearly a billion dollars to u.s. and u.k. regulators to settle charges related to the london whale trade.

The bank is admitting it violated federal securities law.

Our bloomberg news reporter covers jpmorgan 4s. kind of unusual.

It is a new thing for the sec but everyone who saw what they admitted to say it didn't go far enough as it didn't specify which securities laws it violated or the bank acted with intent trade so there is no actual fraud charge of any kind here.

So what exactly did they violate?

It doesn't say.

They definitely violated disclosure rules because they gave out bad information.

Their internal controls were a mess and that's another violation but the bank didn't testify which ones because it doesn't want to get the shareholders who lost money a roadmap on how to sue them.

Typically on wall street, banks don't even admit wrongdoing because that opens them up to other action.

Why do you think they set at almost unprecedented step for a big bang?

I don't think it was an option to say no.

Mary jo white had to recuse herself because she used to be one of jpmorgan's outside attorneys.

This is a new populist revolt.

People are still angry from the financial crisis.

They haven't seen any executives go to jail and they are thinking you can't screw up this badly and say i'd neither admit nor deny any wrongdoing.

Does this mean we can close the door on the whale trade?


it's not completely behind jpmorgan.

The department of justice is still investigating.

The commodities future exchange commission which regulates energy trading markets and derivatives markets gave them notice they intend to take enforcement action against them.

And you have the sec who has an ongoing investigation.

This is why jamie dimon can expect there might be additional fines to come?

There was an additional fine today for something completely unrelated that no one cares about from the consumer financial protection bureau on identity theft products.

That cost the company $400 million.

What does this mean ultimately for jamie dimon?

Can he get through this with the support of the board?

Board came out with a statement today, the lead director came out and said they think management is on top of it and they have confidence in management.

So right now, they still do.

I think only time will tell.

Last year come a faced a very tough vote on whether he could keep his chairmanship and that was just on the whale.

Now you have the whale, the foreign practices act investigation, energy market manipulation, mortgage on criminal investigations, consumer investigations on credit cards and other things.

Just a whole host of things hitting this bank at one time.

Does this speak to a broader issue, which is some of these banks have gotten too big?

At what a lot of analysts say.

They think the fines were so high.

This was one of the largest fines, somewhere in the top five or 10 of all time if you look at the collective amount for one infraction.

What they are saying is they are going to make it extremely punitive.

Few are so big that you cannot control these issues or areas of your business, we are going to throw the book at you.

That is what happened to jpmorgan today.

Thank you for all your reporting.

This text has been automatically generated. It may not be 100% accurate.


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