JPMorgan Chase to Pay $150 Million to Settle `Whale’ Suit

20 Jan 2016 | Author: | No comments yet »

DeWine announces settlement with JPMorgan Chase.

COLUMBUS, Ohio — JPMorgan Chase has agreed to pay $150 million to public pension funds and individuals hurt by its $6 billion “London Whale” trading loss. Crude prices are set to rise from current “very low” levels that are hurting producers, Iraq’s Oil Minister Adel Abdul Mahdi said after a meeting of Arab petroleum-exporting nations.NEW YORK: US regulators fined JPMorgan Chase $307 million Friday for failing to disclose conflict of interests to clients when it recommended proprietary investment products over third-party options.

JPMorgan Chase will pay more than $US300 million ($422 million) to settle allegations it didn’t inform clients properly about numerous conflicts of interest in how it managed customers’ money over a half decade.COLUMBUS, Ohio (WDTN) – The Ohio Attorney General Mike DeWine announced Monday a $150 million class action settlement with JPMorgan Chase & Co. over a 2012 trading scandal. The settlement was disclosed in papers filed on Friday in federal court in Manhattan and would resolve a class action lawsuit filed in the wake of the scandal that emerged in 2012. Abdul Mahdi, whose country is the second-biggest producer in OPEC, didn’t forecast when prices would rebound from an almost seven-year low for Brent, the benchmark for more than half of the world’s oil. The largest US bank by assets didn’t tell customers it reaped profit by putting their money into mutual funds and hedge funds that generated fees for the company, the SEC said in announcing $US267 million in penalties and disgorgement against JPMorgan.

Under the terms of the settlement, JPMorgan will pay $267 million to the S.E.C. and an additional $40 million to the Commodity Futures Trading Commission. It comes in a 2012 class-action lawsuit that alleged JPMorgan Chase issued false and misleading statements regarding its trading activity, describing risky and speculative trading strategies as mere “hedges” or “risk management” devices. The lawsuit stemmed from oversight by JPMorgan’s Chief Investment Office of a synthetic credit portfolio that caused the $6.2-billion loss and was linked to traders in the bank’s London office including Bruno Iksil, the so-called London Whale.

KaloBios shares plummeted 53 percent Thursday after Shkreli, 32, was arrested in New York on charges related to one of his previous companies, Retrophin Inc. Qatar’s Energy Minister Mohammed Al Sada told reporters before the meeting in Cairo there was no need to be pessimistic about prices. “There is no doubt that oil prices will rebound,” Abdul Mahdi told reporters Sunday after the meeting of the Organization of Arab Petroleum Exporting Countries. “This current level is too low, and it’s affecting oil producers. I think economic factors and fundamentals are still strong.” A global oversupply of crude has triggered the worst slump in the energy business since the 2008 world financial crisis. JPMorgan has been penalised more than $US23 billion in settlements with US authorities in recent years, in connection with allegations that included conspiring to manipulate foreign currency rates, allowing the “London Whale” trader to exceed risk limits, failing to flag transactions related to Bernard Madoff’s Ponzi scheme and misrepresenting the value of mortgage-backed securities. Beginning in 2007, JPMorgan developed basic investment portfolios through a program called the Chase Strategic Portfolio that automatically invested a large portion of any money in proprietary JPMorgan mutual funds.

According to The Wall Street Journal, a number of banks are concerned about employees leaking sensitive data to hackers or leaving traces online that make it easier for hackers to penetrate into databases. JPMorgan admitted disclosure failures from 2008 to 2013 related to two units that manage money – its securities subsidiary and its nationally chartered bank. The Attorney General says the trading losses incurred by JPMorgan Chase caused the bank’s stock value to plummet resulting in a billion dollars of investor losses.

Former traders Javier Martin-Artajo and Julien Grout have been criminally charged in the United States with hiding losses linked to Iksil, who has been cooperating with prosecutors. The programs reportedly funneled money into the bank’s own hedge funds and into hedge funds whose managers were willing to pay placement fees to JPMorgan.

Last weekend, the University of California at Davis and Moffitt Cancer Center in Florida said they had suspended a planned drug trial sponsored by KaloBios. Brent for February settlement slid as much as 83 cents to $36.05 a barrel Monday on the London-based ICE Futures Europe exchange and was at $36.13 at 12:55 p.m. local time. JPMorgan has enhanced its disclosures over the last two years in an effort at “full transparency in client communications,” bank spokesman Darin Oduyoye told AFP.

The company’s stock was trading at less than $1 before he made the move, and it subsequently rose to as high as $39.50, giving the company a market value of more than $100 million. The AG says In the next few weeks, all class members will be notified of their status in the class by a claims administrator appointed by the court, and will receive additional information about filing a claim. Chase joined KaloBios’ board of directors when Shkreli took over the company along with a larger investor group including Marek Biestek and David Moradi. OAPEC was established in 1968 to foster the development of the petroleum industry in member states as part of an economic integration plan among Arab countries. The settlement caps about two years of investigations, during which the government deposed asset-management executives and issued subpoenas for internal documents.

KaloBios’ stock was frozen after the Nasdaq requested additional information on Thursday, the exchange said in a statement the day of Shkreli’s arrest. The $US307 million in fines and disgorgement accounts for a little more than 1 per cent of the company’s annual operating profit, or about a month of those at its asset-management division. The settlement, announced on the Friday before Christmas, didn’t go far enough, Dennis Kelleher, a lawyer who runs consumer advocacy group Better Markets, said. “The conduct involves steering clients into proprietary products so brokers get higher commissions and JPMorgan gets good asset-management numbers,” said Kelleher, who said the practices remained costly for customers, additional disclosures notwithstanding. “This wasn’t a rogue trader.

It’s a five-year pattern.” The SEC’s inquiries looked into JPMorgan Asset Management, a unit that grew rapidly after the 2008 financial crisis, as new regulations crimped areas including hedge-fund and proprietary trading operations that have traditionally been lucrative for Wall Street firms. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. However, with the change in Federal Reserve’s decade-long interest rate policy, banks are in a better position to generate higher income, and bear the costs of improved cyber security. You can view the original version of this story at Get Analysts’ Upgrades and Downgrades Daily – Enter your email address below to receive a concise daily summary of analysts’ upgrades, downgrades and new coverage with’s FREE daily email newsletter. Brian explained: “We spend a lot of money; we’re difficult with our employees in terms of what their behavior is to make sure they help keep us clean.” Similarly, Wells Fargo & Co. (NYSE:WFC) CEO John Stumpf recently tapped the significance of pitching sufficient funds to prevent further dents to cyber security.

It also had the highest percentage growth in asset inflows of any large manager in the five years through 2014, ending the year with $US1.7 trillion under management, a February presentation to investors said. Creative Dynamics, the developer responsible for bringing Rise of the Tomb Raider to Xbox One, has progressed with the title enough to be able to release a demo.

We believe this was a fairly decent tactic on Microsoft’s part to win Xbox fans’ hearts, by letting them know that the company is willing to go the extra mile for them. Micron Technology, Inc. (NASDAQ:MU) shares have dropped nearly 60% since the start of fiscal year 2016, fizzling down to their 52-week low of $13.50 on December 14. The memory chipmaker has continued to underperform the market as a result of underwhelming demand and deteriorating Dynamic Random Access Memory (DRAM) pricing trends. Despite continued DRAM pricing weakness, Micron Technology disclosed its intention of securing the remaining interest in Taiwanese chipmaker, Inotera Memories for $0.92 per share.

At the other end, Micron has entered into a definitive agreement with Intel Corporation (NASDAQ:INTC) for the production of its next generation 3D Crosspoint technology.

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