8-KOther Events

JPMORGAN CHASE & CO 8-K Report, Corporate Update (Oct 16, 2013)

Filed October 16, 2013For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. (JPM) filed an 8-K on October 16, 2013, to report on a consent order entered into by its subsidiary, JPMorgan Chase Bank, N.A., with the Commodity Futures Trading Commission (CFTC). This order resolves the CFTC's investigation into specific credit default swap index trading activities conducted by former London-based traders within the firm's Chief Investment Office (CIO). As part of the settlement, JPMorgan Chase Bank agreed to pay a $100 million civil money penalty. The bank will also continue to implement enhancements to its control and supervision systems related to swaps trading activities. This action stems from alleged violations concerning CIO trading on February 29, 2012, in a particular credit default swap index. This development follows earlier settlements with other regulatory bodies regarding CIO-related matters.

Key Highlights

  • 1JPMorgan Chase Bank, N.A. entered into a consent order with the Commodity Futures Trading Commission (CFTC).
  • 2The consent order resolves the CFTC's investigation into credit default swap index trading by former London-based traders in the Chief Investment Office (CIO).
  • 3JPMorgan Chase Bank agreed to pay a $100 million civil money penalty to the CFTC.
  • 4The firm will continue implementing enhancements to its control and supervision systems for swaps trading.
  • 5The CFTC's action is based on alleged violations concerning CIO trading on February 29, 2012, in a specific credit default swap index.
  • 6This filing follows previous settlements of other CIO-related matters with the SEC, Federal Reserve, OCC, and UK FCA.
  • 7Certain litigation and government investigations related to the CIO, including with the DOJ and Massachusetts Securities Division, remain ongoing.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce that JPMorgan Chase Bank, N.A., has reached a consent order with the Commodity Futures Trading Commission (CFTC) to resolve an investigation into specific trading activities within the firm's Chief Investment Office (CIO).

JPMorgan Chase Bank has agreed to pay a $100 million civil money penalty as part of the consent order. The firm will also continue to invest in and implement enhancements to its internal control and supervision systems for swaps trading activities.

No, this filing indicates that while the CFTC matter is resolved through a consent order, and other CIO-related matters have been settled with various agencies, certain litigation and government investigations, including those by the Department of Justice and the Massachusetts Securities Division, are still ongoing.

The CFTC's action is based on findings of violation concerning CIO trading activity on February 29, 2012, in a particular credit default swap index instrument, conducted by certain former London-based traders.