{"id":5533,"date":"2013-11-04T00:00:00","date_gmt":"2013-11-04T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/11\/jpmorgans_admission_to_cftc_of"},"modified":"2022-05-04T14:45:40","modified_gmt":"2022-05-04T19:45:40","slug":"jpmorgans-admission-to-cftc-of","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/jpmorgans-admission-to-cftc-of\/","title":{"rendered":"JPMorgan\u2019s Admission to CFTC of \u201cReckless\u201d Trading Could Lead to More Securities Fraud Cases"},"content":{"rendered":"\n

According to one brokerage executive who spoke with Advisen<\/em>, JPMorgan Chase & CO.’s (JPM)<\/a> admission to the Commodities Futures Trading Commission when settling securities allegations over its London Whale debacle that it engaged in \u201creckless\u201d trading could get the financial firm into more legal trouble with investors. <\/p>\n

The CFTC implied that because of certain \u201cmanipulative\u201d actions, JPMorgan managed to sell $7B in derivatives in one day, including $4.6 billion in three hours. That the term \u201cmanipulate\u201d was used could prove useful to plaintiffs (The regulator also accused the firm of using manipulative device related to credit default swaps trading, which violated a Dodd-Frank provision prohibiting such behavior). JPMorgan will pay $100 million to settle the securities fraud cause with the agency.<\/p>\n

With the Securities and Exchange Commission also now seeking to obtain admission of wrongdoing from defendants in certain instances, such acknowledgments to regulators could impact firm\u2019s insurance coverage terms. Right now, standard directors and officers coverage policies exclude personal profiting, fraud, and other illegal conduct. Admissions of fraud, however, could nullify such policies. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

According to one brokerage executive who spoke with Advisen, JPMorgan Chase & CO.’s (JPM) admission to the Commodities Futures Trading Commission when settling securities allegations over its London Whale debacle that it engaged in \u201creckless\u201d trading could get the financial firm into more legal trouble with investors. The CFTC implied that because of certain \u201cmanipulative\u201d […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3810,3959,3752,3958],"tags":[],"class_list":["post-5533","post","type-post","status-publish","format-standard","hentry","category-cftc","category-derivatives","category-financial-firms","category-jp-morgan-chase"],"yoast_head":"\nJPMorgan\u2019s Admission to CFTC of \u201cReckless\u201d Trading Could Lead to More Securities Fraud Cases — Investor Lawyers Blog — November 4, 2013<\/title>\n<meta name=\"description\" content=\"According to one brokerage executive who spoke with Advisen, JPMorgan Chase & CO.'s (JPM) admission to the Commodities Futures Trading Commission when — November 4, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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