The Federal Reserve lifted restrictions on JPMorgan Chase for its role in exchange rate rigging between 2008 and 2013.
The Fed, which among its responsibilities helps regulate banks, ended a 2015 enforcement order against JPMorgan for “dangerous and misguided banking practices,” such as coordinating transactions with other banks through discussion forums and sharing confidential customer information, the Fed said in a statement. declaration Thusday. At the time of the order, authorities also fined JPMorgan $ 342 million and asked it to improve surveillance and controls.
JPMorgan’s end of regulatory sanction closes chapter in rigging scandal, even as potential class action lawsuit legal proceedings are looming for banks accused of collusion to rig benchmark exchange rates. Global banks, including Citigroup, JPMorgan, Barclays, the Royal Bank of Scotland and UBS, have paid more than $ 10 billion in fines and settlements in the wake of the scandal. The currency market, in which $ 6.6 trillion changes hands daily, is the largest in the world.
Last year, a former JPMorgan trader, Akshay Aiyer, has been condemned to eight months in prison for his role in the rigging of the offers. Richard Usher, another former JPMorgan trader, was acquitted in 2018, alongside former Citigroup and Barclays bankers accused of belonging to a group known as the “Cartel”.