JPMorgan’s foreign exchange business under criminal investigation

The Department of Justice has opened a criminal investigation into JPMorgan Chase‘s foreign exchange business.

The announcement by the nation’s largest bank follows a similar disclosure Thursday by Citigroup. Banks in the U.S. and abroad are facing allegations that they manipulated foreign-exchange rates.

Besides the Justice Department, JPMorgan says civil enforcement authorities and foreign regulators are also investigating its foreign exchange business.

The New York bank said late Monday in a filing with the U.S. Securities and Exchange Commission that it had boosted the amount of money set aside for legal expenses. It now has $5.9 billion in reserve, up from the $4.6 billion it reported in August.

JPMorgan Chase & Co. has paid billions in penalties since the financial crises related to mortgages and huge investor losses.

Shares edged lower before the opening bell Tuesday.

JP Morgan rate manipulation

Source: http://www.huffingtonpost.com/2014/11/04/jpmorgan-foreign-exchange_n_6099398.html