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JP Morgan Chase, seeking to resolve investigations into the loss of $ 6.2 billion in bad trades, is close to an agreement calling for the bank to pay fines totalling at least $ 700 million, US news reports said on Monday.
The investigations, prompted by the bank’s huge trading loss on derivatives, were launched by regulators both in the United States and Britain. The loss occurred at its London branch and was announced in May 2012.
JP Morgan Chase, the largest bank in the US, is hoping to resolve the investigations before the third quarter ends September 30, according to people familiar with the talks quoted by Bloomberg news.
The bank’s board is meeting this week and is likely to approve the fines, the New York Times reported.
The US Securities and Exchange Commission, the US Federal Reserve and Britain’s Financial Conduct Authority are among the regulatory agencies planning to fine the bank, according to the reports.
Resolving the investigations would help close a painful chapter in which JP Morgan Chase’s chief executive, Jamie Dimon, was forced to testify at a congressional hearing and take a 50 per cent pay cut.
Traders suspected of being responsible for the losses or covering them up have been charged.
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