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In this June 13, 2012 file photo, JPMorgan Chase CEO Jamie Dimon testifies before the Senate Banking Committee on Capitol Hill in Washington about how his company lost more than $2 billion on risky trades.
In this June 13, 2012 file photo, JPMorgan Chase CEO Jamie Dimon testifies before the Senate Banking Committee on Capitol Hill in Washington about how his company lost more than $2 billion on risky trades.
(J. Scott Applewhite/AP)

JPMorgan finally fesses up

JPMorgan Chase & Co., the largest U.S. bank, has agreed to pay nearly $1-billion (U.S.) to regulators on both sides of the Atlantic to settle multiple probes into its “London Whale” trading disaster.

That’s a whopper of a fine – but don’t be distracted by the big numbers in the settlement.

The real news here is that JPMorgan has admitted that it broke securities laws. That marks a major departure from past civil settlements involving financial institutions, which often ended with a kind of gentleman’s agreement: banks would agree to pay a hefty fine but they would neither admit nor deny the charges levelled by regulators.