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US banking giant JP Morgan is due to report third-quarter earnings today. The release is being closely watched as a gauge for how the US banking sector performed as a whole in the three months through September.
Almost $1 billion Fine Weighs on Sentiment
Shares in JP Morgan traded higher initially in response to a set of positive Q2 results. The bank posted second-quarter earnings per share of $1.38. This beat estimates for a $1.15 reading. However, just over a month later, shares were knocked lower. This was in response to the news that the bank had been ordered to pay almost $1 billion in fines. The payments were to settle a government investigation into alleged malpractice.
The bank was investigated by the Justice Department, the Commodity Futures Trading Commission, and the Securities Exchange Commission. It was over claims that the bank was involved in spoofing. This refers to a practice where the market is flooded with false orders. It is done to influence price action. Following...
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