In news that we wish was from The Onion but was an actual fine, the CFTC announced Thursday they have fined JP Morgan $600,000 for violating speculative position limits in cotton futures.

You read that correctly, six hundred thousand dollars.

In other news, Jamie Dimon made roughly $600,000 during the time it took to down his morning latte while deleting the CFTC’s memo.

From the CFTC:

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that JP Morgan Chase Bank, N.A. (JPMCB) agreed to pay a $600,000 civil monetary penalty to settle CFTC charges that it exceeded speculative position limits in Cotton No. 2 futures contracts trading on the IntercontinentalExchange U.S. (ICE).

According to the CFTC order, JPMCB held net short futures equivalent positions in Cotton No. 2 futures contracts in excess of CFTC speculative position limits on several days between September 16, 2010 and October 5, 2010 (the relevant period). The CFTC’s speculative position limits for Cotton No. 2 futures are 3,500 contracts in a single month and 5,000 contracts in all months combined. According to the order, during the relevant period JPMCB had a long-side hedge exemption in Cotton No. 2 futures, but its short-side positions remained subject to the 3,500 and 5,000 contract limits. The order finds that JPMCB held short positions in excess of both the single-month and all-months speculative position limits during the relevant period.

The order further finds that JPMCB held those positions as a result of an inadvertent deficiency in its automated position limit monitoring system, which generates a report used by commodity traders to track their current positions relative to the applicable speculative position limits. However, as originally configured, the automated monitoring system did not differentiate between the different long- and short-side position limits applicable to JPMCB’s trading in Cotton No. 2 futures, the order finds. After learning of this deficiency, JPMCB utilized a manual position limit monitoring procedure pending correction of the automated monitoring system, according to the order. Despite adoption of this manual position limit monitoring procedure, JPMCB violated its short-side speculative position limit on several occasions during the relevant period, the order finds.

In addition to imposing the $600,000 civil monetary penalty, the CFTC order requires JPMCB to cease and desist from further violations of Section 4a(b)(2) of the Commodity Exchange Act and CFTC regulation 150.2, as charged.

The CFTC appreciates the assistance of the ICE staff.

CFTC staff members responsible for this case are Melanie Bates, Kara Mucha, James A. Garcia, Michael Solinsky, Gretchen L. Lowe and Vincent McGonagle of the CFTC’s Division of Enforcement, and Walter Spilka of the CFTC’s Division of Market Oversight.

    • @jcia2006 I think he meant that the next fines will be charged at JP Morgan is for manipulating silver’s price. He didn’t meant that JP Morgan is going to start a silver manipulation since it is already happening.
      If he does actually meant that silver manipulation will be the next thing that JP Morgan will be doing, then his comment would of give me cancer.

  1. $600000 holy shit .That represents a weekend at the Raj with  a steady stream of quality call girls  for our boys doing “GoDs Work”.
    That will make those bankster baddies think twice before they risk the punitive wrath of the CFTC.
    You can rest assured this will be the death kneel for Bankster market manipulation.

  2. What a joke!
    Time to break out those cufflinks again and show the world who really is in CHARGE!
    It is PATHETIC!
    Is there no way out of this $#%T!

  3. Is this based on the “1% rule”?  JPM made $60,000,000 in profits from their law-breaking, so they’re allowed to be fined $600,000?  Or should that be the “0.1% rule”?  Where would the markets be without such efficient and effective regulators such as the CFTC?  Plus, they’ve got the world history record on longest-running commodity price manipulation investigation by any government entity, with their Silver investigation going on 5 years and counting…  (And even gold doesn’t get the same treatment as silver.)

  4. WOW!! This must have hurt JPM as bad as when the city fined me $.03 for farting in the bath water last spring. I feel so secure now knowing that the CFTC is not afraid to swing its weight around to force these big banks to straighten up!! 

  5. As if we needed yet another reminder of who owns and operates the USA.

    Makes me wonder if the dweebs at CFTC realize that they will get to swing right beside their masters after the American Revolution, Part II?

  6. That’s it? 600,000$ in fines is way lower than the illegal profits that they have made! In my opinion, all the leaders of JP Morgan should be jailed and the bank itself should be shut down. CFTC is in team with JP Morgan and they are going to do their best to hide the truth and will continue to do illegal actions. CTFC is no longer available for helping the public and is now available to help the rich and big corporations!

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