U.S. stocks fell today as the possibility of a $14 billion fine against Deutsche Bank weighed on big banks and investors wrestled with lingering uncertainty about when the U.S. Federal Reserve will hike interest rates.
Regulators in the U.S., Britain and Switzerland ordered five banks to pay about $3.3 billion in the first wave of penalties since authorities began a global probe into the rigging of key foreign-exchange benchmarks last year.
The U.S. Commodity Futures Trading Commission issued five Orders filing and settling charges against Citibank, HSBC, JPMorgan, RBS and UBS for attempted manipulation of global forex benchmark rates to benefit the positions of certain traders.
JP Morgan is taking a loss of at least $2 billion from a failed hedging strategy, dragging shares, and the markets, lower. Dimon said the blunder could cost an additional $1 billion or more, noting that “it is risky and it will be for a couple quarters.”