NEW YORK – J.P. Morgan Chase & Co. will pay $100 million and admit to reckless conduct on charges related to the "London Whale" trading scandal, said the Commodity Futures Trading Commission in a statement on Wednesday. The nation's biggest bank by assets has admitted employing manipulative devices in connection with the bank's trading of certain credit default swaps, said the regulator. The CFTC is using new regulatory power for violations against manipulative conduct, under the Dodd-Frank Act, in the 17-month investigation. "As this case demonstrates, the Commission is now better armed than ever to protect the market from traders, like those here, who try to 'defend' their position by dumping a gargantuan, record-setting, volume of swaps virtually all at once, recklessly ignoring the obvious dangers to legitimate pricing forces," said David Meister, the CFTC's Director of Enforcement. J.P. Morgan shares were up nearly 3% in early trading.
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