{"id":14820,"date":"2013-10-17T08:27:05","date_gmt":"2013-10-17T12:27:05","guid":{"rendered":"http:\/\/ssgreenberg.name\/PoliticsBlog\/?p=14820"},"modified":"2013-10-17T08:27:34","modified_gmt":"2013-10-17T12:27:34","slug":"a-regulator-cuts-new-teeth-on-jpmorgan-in-london-whale-case","status":"publish","type":"post","link":"https:\/\/ssgreenberg.name\/PoliticsBlog\/2013\/10\/17\/a-regulator-cuts-new-teeth-on-jpmorgan-in-london-whale-case\/","title":{"rendered":"A Regulator Cuts New Teeth on JPMorgan in \u2018London Whale\u2019 Case"},"content":{"rendered":"<p><em>The New York Times<\/em> has the story <a title=\"The New York Times article\" href=\"http:\/\/dealbook.nytimes.com\/2013\/10\/16\/jpmorgan-to-pay-100-million-and-make-admission-of-wrongdoing-in-london-whale-pact\/\" target=\"_blank\"><strong>A Regulator Cuts New Teeth on JPMorgan in \u2018London Whale\u2019 Case<\/strong><\/a>. The agency is the Commodity Futures Trading Commission.<\/p>\n<blockquote><p>The agency\u2019s authority to bring such a case traces to Dodd-Frank. For years leading up to the law, the agency was hamstrung in its pursuit of market-manipulation cases. Under existing laws, it had to prove that a trader intended to manipulate the market and successfully created artificial prices.<\/p>\n<p>Even when cases were filed, they rarely panned out. In fact, according to Mr. Chilton, the agency has successfully litigated only one manipulation case in the agency\u2019s 38-year history.<\/p>\n<p>But under Dodd-Frank, the agency must show only that a trader acted \u201crecklessly.\u201d<\/p>\n<p>\u201cIn Dodd-Frank, Congress provided a powerful new tool enabling the C.F.T.C. for the first time to prohibit reckless manipulative conduct,\u201d David Meister, the agency\u2019s enforcement director, said in a statement on Wednesday.<br \/>\n.<br \/>\n.<br \/>\n.<br \/>\nHoming in on one day in late February 2012, the agency\u2019s order exposed a series of questionable trading practices at the bank\u2019s chief investment office in London.<\/p>\n<p>The traders, seeking to minimize losses and vowing to \u201cdefend the position,\u201d sold more than $7 billion of credit default swaps to hedge funds and other traders on Feb. 29.<\/p>\n<p>It was a \u201cstaggering, record-setting volume,\u201d the trading commission said. The sales, the trading commission added, \u201caccounted for more than 90 percent of the day\u2019s net volume traded by the entire market.\u201d<\/p><\/blockquote>\n<p>The section of Dodd-Frank bill that was used in this case was championed by Senator Maria E. Cantwell.\u00a0 It all started when women got the right to vote 1n 1920.\u00a0 Elizabeth Warren is not alone in pushing for reform.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The New York Times has the story A Regulator Cuts New Teeth on JPMorgan in \u2018London Whale\u2019 Case. The agency is the Commodity Futures Trading Commission. The agency\u2019s authority to bring such a case traces to Dodd-Frank. For years leading up to the law, the agency was hamstrung in its pursuit of market-manipulation cases. Under [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[166],"tags":[],"class_list":{"0":"post-14820","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-stevegsposts","7":"czr-hentry"},"_links":{"self":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/14820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/comments?post=14820"}],"version-history":[{"count":1,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/14820\/revisions"}],"predecessor-version":[{"id":14821,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/14820\/revisions\/14821"}],"wp:attachment":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/media?parent=14820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/categories?post=14820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/tags?post=14820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}