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JPMorgan's headquarters in New York
Photo: JOHANNES EISELE / AFP
The US bank JPMorgan Chase has to pay a record fine of 920 million dollars (790 million euros) on allegations of market manipulation.
The US Department of Justice said on Tuesday that the bank had cheated on financial futures for precious metals as well as on futures for US Treasuries for years.
JPMorgan traders placed orders to buy and sell futures contracts for gold, silver, platinum and palladium in "tens of thousands" between 2008 and 2016, and then cancel the trades before they were executed, the ministry said.
This should have misled other market participants about the supply and demand for such financial contracts.
Also between 2008 and 2016, JPMorgan is said to have cheated on futures transactions for government bonds with a similar system.
In thousands of cases, orders to buy and sell the papers were placed here, only to be deleted again, said the Justice Ministry.
In the United States, this method is known as "spoofing".
In the past, several banks in the US had to pay heavy fines for manipulating the markets, including Deutsche Bank.
The $ 920 million fine now imposed on JPMorgan Chase is the highest in such a case in US history.
In exchange for the payment, the Department of Justice and the SEC and CFTC are closing their criminal and civil investigations against the bank.
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