JPMorgan Chase to pay $920M in settlement

JPMorgan Legal Burdens

Mark Lennihan/AP

In this Oct. 10, 2008 file photo, a man walks into a JPMorgan Chase & Co. building in New York's financial district. Since the financial crisis, JPMorgan Chase has a long list of legal challenges beyond the $6 billion trading loss known as the "London Whale."

JPMorgan Chase & Co. will pay $920 million and admit wrongdoing in a settlement with U.S. and British regulators over the $6 billion "London Whale" trading loss last year that tarnished its reputation.

The U.K.'s Financial Conduct Authority fined the company $220 million, the British Securities and Trade Commission fined $200 million and required JPMorgan to admit wrongdoing.

The U.S. Federal Reserve Board imposed a $200 million penalty, while the Office of the Comptroller of the Currency set a $300 million fine.

Weak internal controls at the biggest U.S. bank enabled traders in its London operation to assign inflated values to trades and to cover up losses as they ballooned.

Two JPMorgan traders face criminal charges of falsifying records to hide the losses.

The stock rose in premarket trading Thursday.

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