JPMorgan pays largest CFTC penalty ever of $920 million and admits wrongdoing in market manipulation case (JPM)

Amr Alfiky/Reuters

• JPMorgan will pay the largest CFTC monetary penalty ever and admitted wrongdoing in order to resolve a case surrounding claims of market manipulation in the trading of precious metals and Treasury securities, Bloomberg first reported.
• The case covers an eight-year period and relates to the practice of "spoofing," where traders put in large orders to buy or sell a security with no intention of executing the order, creating the appearance of demand or supply for a particular asset.
• JPMorgan will pay $920 million, which includes a $436.4 million fine, $311.7 million in restitution, and $172 million in disgorgement.
• Visit Business Insider's homepage for more stories.

JPMorgan will pay $920 million and admit wrongdoing in order to resolve a case surrounding claims of market manipulation, Bloomberg first reported on Tuesday.

The $920 million payment represents the largest-ever monetary penalty imposed by the Commodity Futures Trading Commission, and consists of a $436.4 million fine, $311.7 million in restitution, and $172 million in disgorgement, according to a statement from the CFTC seen by Bloomberg.

The case covers an eight-year period and relates to the practice of "spoofing," where traders put in large orders to buy or sell a security with no intention of executing the order, creating the appearance of demand or supply for a particular asset, and helping move that asset in the desired direction of the trader.

It's unlawful to submit and cancel orders in a strategy intended to deceive other traders.

The settlement will put an end to a criminal investigation of the bank that has entangled a half-dozen employees. Two employees have entered guilty pleas, while four employees are facing trial, according to Bloomberg.

JPMorgan traded down as much as 2% on Tuesday.

Read more: The CEO of a $41 billion money manager says there will be 'bountiful buying opportunities' with higher volatility heading into year-end — and shares 4 high-dividend-paying stocks to play this market

Markets Insider

NOW WATCH: What living on Earth would be like without the moon

See Also:

• Sunil Thakor's global stock fund has returned more than 500% to investors since 2009 by precisely targeting high-growth companies. He explains how he finds long-term winners in a 'sweet spot' that minimizes risk.
• Legendary investor Mark Mobius told us his process for finding the most exciting bargains in far-flung markets around the world amid the COVID-19 crisis — and shared his 5 top stock picks right now
• BANK OF AMERICA: Hedge funds just made a decisive shift into corners of the market that benefit from a recovery — and these 9 sectors are the best-suited to take advantage of it