Fed drops 2011 enforcement action against JPMorgan for bid rigging

[WASHINGTON] The Federal Reserve on Tuesday said it dropped an enforcement action against JPMorgan Chase & Co in a 2011 bid-rigging matter and the bank will no longer have to submit compliance paperwork, the central bank said on Tuesday.

JPMorgan paid US$211 million in a six-year-old settlement with federal regulators after the Wall Street bank admitted to rigging derivatives bids sold to clients.

The bank also agreed to regularly report on how it would prevent future bid-rigging abuse and that additional paperwork is no longer required after the Tuesday announcement.

Bank of America had been part of a similar agreement and the Fed dropped its extra oversight of that lender in a move announced last week.

REUTERS