Breaking News from CNBC's Kate Kelly: JPM Denies Manipulating Credit Derivatives Markets to CFTC - Sources
WHEN: TODAY, MONDAY, OCTOBER 7th
WHERE: CNBC'S "STREET SIGNS"
Following is breaking news from CNBC's Kate Kelly. All references must be sourced to CNBC.
KATE KELLY: MANDY CNBC HAS LEARNED THAT JPMORGAN IS PREPARING TO FIGHT CHARGES FROM THE CFTC THAT AS PART OF ITS LONDON WHALE TRADES IN 2012 IT ESSENTIALLY MANIPULATED CERTAIN CORPORATE DERVIATIVE MARKETS. THE CFTC FILED A WELLS NOTICE ON SEPTEMBER 16THAGAINST THE BANK. A WELLS IS ESSENTIALLY AN INDICATION THAT THEY ARE VERY LIKELY TO BRING CHARGES IN THIS CASE POTENTIAL MANIPULATION CHARGES OVER THE LONDON WHALE TRADES. JPMORGAN THEN HAD 14 CALENDAR DAYS TO EITHER RESPOND IN SOME WAY OR TO SETTLE THE CASE OR RISK BEING SUED. I'VE LEARNED JPMORGAN OPTED TO RESPOND TO THIS. THEY HAVE DENIED THAT THEY MANIPULATED MARKETS AND ARE ESSENTIALLY LAYING THE GROUND WORK TO FIGHT THIS CASE IF THEY NEED TO. HOWEVER, A SETTLEMENT IS STILL POSSIBLE MANDY AND BRIAN SO WE'LL SEE WHAT THE NEXT MOVE IS WHETHER IT ENDS UP BEING A SETTLEMENT OR THE CFTC TAKES A TOUGH LINE AND DECIDES TO SUE.
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