JP morgan is paying $800 million dollars to the SEC and other agencies to put to rest its "London Whale" trading fiasco. The "London Whale" gets its name from JP Morgan Chase trader Bruno Iksil, (nicknamed the London Whale). Iksil took a large gamble on an obscure corner of the market and witnessed a spectacular loss. He incurred $6.2 billion in losses and allegedly mismarked some of the trades to cover up their magnitude. His boss is also being sued by the SEC for assisting in the cover up. JP Morgan has been the subject of an investigation by the U.S. government since the fiasco.
JP Morgan Chase is expected to pay $800 million in penalties and admit wrongdoing as part of a board regulatory settlement over the matter. An acknowledgment of wrongdoing by the company would be a high-profile win for the SEC. In addition to this investigation JP Morgan is also facing potential enforcement action from the Commodity Futures Trading Commission for allegedly placing misleading values on its derivatives positions behind the London trades. In spite of all of this the stock price (NYSE: JPM) has returned to pre-scandal levels.
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