The person said the tentative agreement does not resolve a criminal investigation of the bank’s conduct. It is being handled by federal prosecutors in Sacramento, Calif.
Preet Bharara, the Manhattan U.S. attorney, hinted that the misconduct was not just the work of a couple of rogue traders, but was systemic in a bank that failed to keep adequate watch over its traders.
CEO Jamie Dimon’s original estimate of the loss from the bad trade, disclosed in a surprise conference call with Wall Street analysts in May, was $2 billion.
Executives from the country’s biggest banks met with U.S. Treasury officials Friday to discuss how debt auctions will be handled if Congress fails to raise the borrowing limit before Tuesday’s deadline.
The Treasury invited 20 of the largest banks to a meeting to discuss an upcoming quarterly auction of government debt.