JPMorgan: Feds pursue criminal forex probe
JPMorgan said it faces a criminal probe of its foreign exchange business and boosted its legal budget by $1.3B.
JPMorgan Chase (JPM) disclosed Monday that the New York-based global bank is in talks with the Department of Justice over a criminal investigation of its foreign exchange business.
Confirming the probe in a quarterly financial filing, the bank also said it was conducting similar talks with enforcement and regulatory authorities conducting civil investigations.
“There is no assurance that such discussions will result in settlements,” the bank said.
JPMorgan also reported that reasonably possible losses from legal matters now total $5.9 billion, a $1.3 billion increase since June 30. Bank CFO Marianne Lake told financial analysts in October that JPMorgan’s recent increases in legal expenses largely related to the foreign exchange probes.
Shares of JPMorgan were down fractionally at $60.50 in after-hours trading Monday. The stock closed up 40 cents at $60.88 in normal trading.
The banking giants are among roughly a dozen global banks whose foreign exchange trading is being investigated by the FCA and authorities and regulators in the U.S. and Europe. The Federal Reserve, the Commodity Futures Trading Commission and the Office of the Comptroller of the Currency are investigating, along with the Department of Justice.
Source: Usatoday-JPMorgan: Feds pursue criminal forex probe
