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$1 billion penalty to be levied against JPMorgan for spoofing - Bloomberg

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(Kitco News) - JPMorgan Chase & Co is facing a $1 billion penalty after U.S. authorities found that the bank unfairly manipulated the metals market, Bloomberg News reported today.

The report cited three people who were familiar with the issue.

U.S. regulatory authorities are cracking down on firms who unfairly manipulate or “spoof” the precious metals market. The $1 billion fine would be far larger than previous penalties. Last year the Commodity Futures and Trading Commission (CFTC) fined Merrill Lynch Commodities, Inc. (MLCI) $25 million.

Bloomberg said official announcement could come as soon as this week. When asked to comment, officials at the Justice Department, CFTC, SEC and JPMorgan all declined.

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