JPMorgan to pay $99.5 million to resolve currency rigging lawsuit
By Jonathan Stempel
NEW YORK (Reuters) - JPMorgan Chase & Co, the largest U.S. bank, agreed to pay $99.5 million to settle its portion of an antitrust lawsuit in which investors accuse 12 major banks of rigging prices in the $5.3 trillion-a-day foreign exchange market.
Made public on Friday night, the settlement is the first in the nationwide litigation and resolved claims over JPMorgan's role in alleged collusion among banks since January 2003 to manipulate the WM/Reuters Closing Spot Rates, known as the Fix.
It followed the New York-based bank's agreements last November to pay roughly $1 billion in civil penalties to resolve related claims by U.S. and European regulators.
Investors including hedge funds, pension funds and the city of Philadelphia accused the 12 banks, which controlled 84 percent of the global currency trading market, of having impeded competition by conspiring to manipulate the Fix in chat rooms, instant messages and emails.
The JPMorgan settlement could form a basis for other settlements. It followed mediation with Kenneth Feinberg, a lawyer who also oversees General Motors Co's program to compensate drivers over faulty vehicle ignition switches.
In an affidavit, Feinberg called the JPMorgan settlement fair, reasonable and adequate.
"Although such analysis is preliminary, it does appear to be consistent with Class Lead Counsel's evaluation of JPMorgan's role in the FX market and JPMorgan's market share over the class period (6%)," he said.
JPMorgan did not admit wrongdoing, and the settlement requires court approval. The bank did not immediately respond on Saturday to a request for comment. Continued...