JPMorgan
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  • JPMorgan agreed to pay the largest Commodity Futures Trading Commission monetary penalty ever and admit wrongdoing to resolve a case over claims of market manipulation in the trading of precious metals and Treasury securities, Bloomberg first reported.
  • The case covers eight years and relates to the practice of “spoofing,” where traders put in large orders to buy or sell a security with no intention of executing them, 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 agreed to pay $920 million and admit wrongdoing to resolve a case over claims of market manipulation in the trading of precious metals and Treasury securities, Bloomberg first reported on Tuesday.

The $920 million payment represents the largest 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, a CFTC statement seen by Bloomberg said.

The case covers eight years and relates to the practice of “spoofing,” where traders put in large orders to buy or sell a security with no intention of executing them, creating the appearance of demand or supply for a particular asset and helping move that asset in the trader’s desired direction.

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

The settlement will end 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

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