Criminal Investigation

NEW YORK (AP) — The Department of Justice has opened a criminal investigation into JPMorgan Chase's foreign exchange business.

JPMorgan Chase & Co. is an American multinational banking and financial services holding company. It is the largest bank in the United States, with total assets of US$2.515 trillion. 

It is a major provider of financial services, and according to Forbes magazine is the world's third largest public company based on a composite ranking. 

The hedge fund unit of JPMorgan Chase is the second largest hedge fund in the United States.[The company was formed in 2000, when Chase Manhattan Corporation merged with J.P. Morgan & Co.

A non-bank foreign exchange company also known as foreign exchange broker or simply "forex" broker is a company that offers currency exchange and international payments to private individuals and companies. 

The term is typically used for currency exchange companies that offer physical delivery rather than speculative trading. i.e., there is a physical delivery of currency to a bank account.

Foreign exchange companies are normally distinct from money transfer companies as they typically perform high-value transfers unlike their money transfer counterparts that focus on high-volume low-value transfers generally by economic migrants back to their home country or to provide cash for travelers. 

The announcement by the nation's largest bank follows a similar disclosure Thursday by Citigroup. Banks in the U.S. and abroad are facing allegations that they manipulated foreign-exchange rates. 

Besides the Justice Department, JPMorgan says civil enforcement authorities and foreign regulators are also investigating its foreign exchange business.

The New York bank said late Monday in a filing with the U.S. Securities and Exchange Commission that it had boosted the amount of money set aside for legal expenses. It now has $5.9 billion in reserve, up from the $4.6 billion it reported in August.

JPMorgan Chase & Co. has paid billions in penalties since the financial crises related to mortgages and huge investor losses.