November 4, BBC reported JP Morgan Chase, one of the oldest banks in the U.S., is being investigated by the U.S. Department of Justice and other regulators. JP Morgan announced the probe in a regulatory filing on Monday and said it was focused on its spot foreign-exchange trading activities and controls.
The U.S. bank said it was co-operating with the investigations and was in talks with the justice department and civil enforcement authorities. Allegations that foreign exchange markets were manipulated have resulted in a focus on whether traders colluded via online chatrooms to set rates.
According to JPMorgan’s estimates, it might incur losses of almost $5.9 billion, the sum it has set aside to cover legal proceedings.
Recently, other banks such as Citi, Barclays, Royal Bank of Scotland, and HSBC have been the subject of foreign exchange allegations and inquiries. On the whole, rigging investigations could require those banks to pay $41 billion in fines.
