JPMorgan Chase faces a fine of $920m for market manipulation

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Traders are alleged to have used “spoofing” to rig markets

big market-manipulation scandals over the past decade have much in common: huge fines for the investment banks, criminal charges for the traders and an embarrassing paper trail revealing precisely what bank employees got up to. Interest-rate traders who manipulated the London Interbank Offered Rate messaged each other with pleas to put their fixes in low. Foreign-exchange traders infamously called a chat room in which they discussed rigging exchange rates “the cartel”.

The case against JPMorgan Chase for manipulating precious-metals and Treasury markets has many of the usual features. On September 29th it admitted to wrongdoing in relation to the actions of employees who, authorities claim, fraudulently rigged markets tens of thousands of times in 2008-16. The bank agreed to pay $920m to settle various probes by regulators and law enforcement; this includes a $436.4m fine, $311.7m in restitution to parties harmed by the practices and $172m in disgorgement .

The traders are alleged to have used “spoofing”, a ruse where a marketmaker seeking to buy or sell an asset, like gold or a bond, places a series of phoney orders on the opposite side of the market in order to confuse other market participants and move the price in his favour. A trader trying to sell gold, for instance, might place a series of buy orders, creating the illusion of demand. This dupes others into pushing prices higher, permitting the trader to sell at an elevated price.

The practice was explicitly outlawed in America in 2010, but the rise of algorithmic traders—which rapidly analyse order books to work out where prices might move next—has made it more tempting for human traders to spoof them. According to prosecutors one JPMorgan trader described the tactic as “a little razzle-dazzle to juke the algos”. In the past two years Deutsche Bank,Though JPMorgan’s case shares similarities with past infringements, regulators and prosecutors have also become tougher.

The penalties for the traders alleged to have run spoofing schemes are also likely to be harsher than usual. Four—including Michael Nowak, the bank’s former head of precious-metals trading, and Gregg Smith, a senior gold trader alleged to have introduced the practice at JPMorgan—have been indicted under the Racketeer Influenced and Corrupt Organisations Act. statute was formulated to target organised crime, the core business practices of which are illegal.

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Maybe no single institution should control enough wealth to manipulate the market at their whim. I mean I think we all know they make more money doing this shit than they ever pay in fines.

The Economist should know that spoofing happens on every market every single day of the week. So no, this fine is nowhere near as far as they need to go to make the markets anything other than complete fraud. Sadly, the Economist doesn't seem to know this or is ambivalent to it.

It’s still not enough. They’ll pay with a happy smile and get back to manipulating. Unless bankers go to jail it will never change.

They are not the only ones, these banks are pure vermin and all trump done is made it easier for these pieces of pure cabbage to rip people off and steal from there clients ,spoofing is only part of these criminals the CEO should be put in prison and all there assets confiscated

FTC they're still doing it and they didn't correct anything or change anything

Gov't takes their cut and back to business as usual.

Can do fintech they can't do fintech they could just do finance and higher and Outsource for protection so they aren't constantly cyber attacked they're going to try to have one of the top cryptocurrencies but they ain't going to make it

This the most crooked bank and haven't even been around that long country wasn't around that long so they will fall with the crypto-currency they ain't going to make it with the tech guys that got them for protection now but the tech guys got their whole blueprint

And who from the bank is going to jail? Oh that’s right, nobody.

Get them on Cyber attacking the credit union and all the countries along with asset acceptance llc which they own or have a interest in or they do sister business with they put zombie and Phantom debts on records and then f***** up people's bank accounts

Ah well, they’ll just charge their clients more fees and have it cleared in no time

Manipulación del mercado nada más? Se quedan cortos muchachos....

😎😎😎HHH

I gather it's not enough to make billions on the up and up. And while I'm at it, shouldn't somebody go to jail

Blackboxtrends

COVID-19

The time has come to eliminate there huge market managers, they have been manipulating the market for years.

That checks. They are establishing two wealth managers for Russia. They need to get rid of the rot before it takes over.

摩根高盛等投行勾結中共的高層官員操縱中囻市場不是一年兩年了 誰來罰它 不等中共滅亡什麼也白搭

When will trump pardon them?

I think, you should know this for Own your business 😉JessicaLexicus

So it's not because the economy is roaring back like Trump says? It's all been rigged to look good?

This is tiny news and should be HUGE.

Just the latest confirmation that banks have become as much a center for organized crime as the Mafia, with Jamie Dimon's bank leading the charge.

Its not new isn’t it? Like a cycle

😂😂😂🤣🤣🤣🤑🤑🤑

That money will be back to JP Morgan again 🤣

Remember: These fuckers wouldn’t have been around today to break the law if taxpayers hadn’t bailed them out a decade ago. Massive fines and jail sentences are in order.

Usually 60 thousand paid bots on the dark web generally start around $100.00 if you know where to look - ranging in services from paid clicks, trolled comments to sharing fake news posts and much more.

Yet nobody goes to jail 🤨

Spoofing happens every day on every market

In financial crisis period (from 2008), JPMorgan was saved by Obama , friend of Biden , wasn't it? If JPMorgan help CCP to 'clean' money, what kind of relationship of Obama and CCP ? WikiLeaks will answer these questions?

the fine needs to be $9.2 Billion, Board members Jailed min 25 years....920m$ is nothing more than a parking ticket

Jp morgan helped ruin nicola tesla

2007 all over again. The insidious relationship between JPM Chase and the Fed reserve + government agencies rekindles again to facilitate dishonest practices within the corrupt finance sector ! Something your current President is neck deep involved with !

The startup currently disrupts these banks and we have at the end of the century 'modern banks'

Seen before. We’ll see again...

Why don't the courts make it an even $10 billion for once .. these guys are sitting on trillions in artfully dodged taxes. Taxes that could pay for more judges and a better funded SEC, at the very least.

....& why is this not surprising?

good good 👍

wow, bankers acting the maggot. who would have ever guessed those greedy c*nts could possibly be involved in such nefarious acts? the real news would be if something was actually done to sanction them... but we all know that ain't gonna happen

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