NEW YORK/WASHINGTON (Reuters) – JPMorgan Chase & Co said it agreed to pay $211 million to settle federal and state charges that its employees rigged bids for derivatives sold to at least 48 cities and not-for-profit organizations.
Bank employees allegedly submitted false, or sham bids, and communicated with competitors to fix prices, between 1999 and 2005, according to the U.S. Office of the Comptroller of the Currency.
Along the with the OCC, actions were brought against the bank by the Internal Revenue Service, the Securities and Exchange Commission, and 25 state attorneys general.
"This fraudulent conduct completely manipulated the playing field and left public entities like governments and nonprofits at a serious disadvantage," New York Attorney General Eric Schneiderman said in a statement.
JPMorgan said in its own statement that "the firm's policies -- both now and during the period in question -- expressly prohibit the conduct that gave rise to these proceedings."
The bank said it has tightened its supervision and set up new surveillance programs to ensure compliance with the law. It dissolved its municipal derivatives desk in 2008.
At least eight people from various banks, including JPMorgan, have pleaded guilty to criminal charges brought earlier in the cases.
(Reporting by Karey Wutkowski and David Pelofsky in Washington and David Henry and Joan Gralla in New York, editing by Matthew Lewis)
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