REPORT: JP Morgan Will Settle The 'London Whale' Case And Admit Wrongdoing

JP Morgan has reached a preliminary agreement with regulators acknowledging the $6 billion London Whale trading debacle was a result of reckless behavior, the New York Times' Ben Protess and Jessica Silver-Greenberg report.

According to the report, the bank could settle with the Commodity Futures Trading Commission as early as this week. JP Morgan will admit some wrongdoing and pay $100 million, sources told the Times.

The "wrongdoing" concession represents a broader shift from Washington regulators, who for decades let banks more or less off the hook with a financial slap on the wrist but no admission of guilt. From the Times:

For the government, an admission by JPMorgan could provide a template for pursuing other admissions in Wall Street cases. Already, according to people briefed on the matter, the Justice Department is pushing JPMorgan to admit that from 2005 to 2007, it sold mortgage securities to investors without fully warning of the risks.

JP Morgan recently announced it will set aside billions of dollars to cover legal expenses associated with several federal investigations.

Last week, the bank reported its first quarterly loss under CEO Jamie Dimon.

Read the full report at the New York Times »