JPMorgan is preparing to plead guilty over antitrust
charges related to the rigging of foreign exchange rates, the bank said
in a regulatory filing Thursday.
The revelation comes as JPMorgan and four other big banks
reportedly enter final preparations for settlements with U.S. regulators
over a widespread currency manipulation scheme involving dozens of
bankers.
The other banks reportedly girding themselves for guilty
pleas include Citigroup, Royal Bank of Scotland and Barclays. UBS,
meanwhile, will see
its 2012 nonprosecution agreement with the
Department of Justice over the Libor scandal torn up as it settles the currency rigging charges, Bloomberg reports.
The Justice Department has lately emphasized its
determination to push banks accused of felonies into pleading guilty, a
practice the agency has largely shied away from in recent years. Banks
that plead guilty to felony charges face a raft of potential regulatory
burdens, including bans on overseeing mutual funds and offering
securities.
The New York Times reported
Wednesday that the banks expecting guilty pleas have been engaged in a
flurry of talks with regulators including the Securities and Exchange
Commission, to arrange waivers that would allow them to continue doing
business as usual.
JPMorgan announced in the filing that negotiations over
foreign exchange sales are “nearing conclusion” and that the bank
“understands that any resolution acceptable to DOJ would require that
the Firm plead guilty to an antitrust charge.”
The Justice Department is expected to announce charges sometime next week.
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