The Federal Reserve has lifted restrictions on JPMorgan Chase for its role in rigging foreign exchange rates between 2008 to 2013.
The Fed, which among its responsibilities helps to regulate banks, ended a 2015 enforcement order against JPMorgan for “unsafe and unsound banking practices,” such as coordinating trades with other banks via chat rooms and sharing confidential customer information, the Fed said in a statement Thursday. At the time of the order, authorities also fined JPMorgan $342 million and instructed it to improve oversight and controls.
The end of JPMorgan’s regulatory punishment closes a chapter in the fixing scandal, even as potential class-action lawsuits loom for banks accused of colluding 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 market for currencies, in which $6.6 trillion changes hands daily, is the largest in the world.
Last year, a former JPMorgan trader, Akshay Aiyer, was sentenced to eight months in prison for his role in bid rigging. Richard Usher, another former trader at JPMorgan, was acquitted in 2018, alongside former bankers at Citigroup and Barclays who were accused of belonging to a group known as “the Cartel.”
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