Tuesday, September 29, 2020

JPMorgan Chase to pay $920 million to settle trading misconduct allegations

How to get rich and richer: cheat people
I notice that in cases like this, they generally say a company did something. Of course, a company can't do anything. It's the people in control who do the misdeeds, and they are rarely named.


By Paul R. La Monica, CNN Business
Updated 2:17 PM ET, Tue September 29, 2020

 PMorgan Chase, the largest bank in the United States, agreed Tuesday to pay a record $920 million to settle charges that it engaged in manipulative trades of futures tied to precious metals and Treasury bonds.

The Commodity Futures Trading Commission said in a statement that JPMorgan Chase (JPM) was involved in "deceptive conduct" over a period of at least eight years that included hundreds of thousands of so-called spoof trades -- orders that were placed and quickly canceled because they were never intended to be executed --- designed to fool investors.

Spoofing can manipulate markets by indicating false demand for an asset. The practice can raise or lower prices of assets, depending on what the spoofer desires. 


But the nearly $1 billion settlement wasn't enough to satisfy Better Markets, a nonprofit, nonpartisan organization founded in 2008 following the Great Financial Crisis with the aim of reforming Wall Street.

Better Markets called the payment a "sweetheart deal" and a "miscarriage of justice," adding that it penalizes only JPMorgan shareholders and not executives or other employees that may have been involved.
Still, three JPMorgan Chase gold traders were charged with allegedly manipulating prices in the precious metals markets a year ago by the Department of Justice.

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