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JPMorgan Chase to Pay $150 Million to Settle ‘Whale’ Suit

  • Investors sued claiming bank's miscues caused losses
  • Ohio pension funds said true nature of trades was hidden
The JP Morgan Chase & Co. headquarters in New York.
Photographer: Scott Eells/Bloomberg
Updated on

JPMorgan Chase & Co. agreed to pay $150 million to settle investor claims that it hid from them as much as $6.2 billion in losses caused by a trader dubbed the London Whale.

A group of pension funds accused JPMorgan of turning its chief investment office in London into a “secret hedge fund” that caused the losses. The bank told investors that the office’s primary role was managing risk when in fact it was engaging in trades to generate profit, they said.