JPMorgan needs to spend at least $1 billion to resolve trading allegations
On Wednesday, JPMorgan Chase & Co. (JPM) reported that it needs to spend at least $1 billion to resolve U.S. government investigations into the alleged market manipulation of metal stocks and Treasury markets.
The New York-based investment banking company said that it was in discussions with U.S. authorities to resolve the investigations.
According to JPMorgan, the United States Justice Department (USJD), Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC) were also involved in the discussions.
Reuters reported that the U.S. Justice Department began using scanning techniques in 2017 to identify suspicious trading patterns. The move was initially developed to spot healthcare fraud schemes.
“The idea was: let’s mine this data source to see who the worst actors are,” U.S. Justice Department Official Robert Zink said.
JPMorgan’s shares were down by 1.6% on Wednesday.