Wednesday, February 4, 2015

JP Morgan is First to Settle Forex Anti-trust Suit

JPMorgan Chase & Co has agreed to pay $100 million to settle a U.S. antitrust lawsuit in which investors accused it and 11 other major banks of rigging prices in the $5 trillion-per-day foreign exchange market. Investors sued the 12 banks alleging that traders at each conspired to rig foreign currency exchange transactions to boost profit at the expense of bank customers and investors.  The settlement must still be approved by the court, and this settlement is separate from the roughly $1.01 billion JP Morgan has agreed to pay to resolve probes by U.S. and European regulators. 

“The settlement is a responsible step by Chase in addressing its involvement,” Michael Hausfeld, a lawyer for the investors, said. “It is a beginning with respect to the accountability of other banks engaged in the same trading.”