Not just Executives of JPMorgan Chase & Co. even managers were tapping out work-related communications on their cellphones!
This had to stop and thus US officials slammed the brakes on Friday, slamming $200 million in fines!
The revelation made the Securities and Exchange Commission and the Commodity Futures Trading Commission levy unusually harsh record-keeping penalties on the company and its subsidiaries.
What Jp Morgan Has To Say Regarding The Matter?
Rather than settling without admitting wrongdoing, the agencies compelled the largest US bank to make rare admissions that it had broken rules. To settle the SEC’s complaint, JPMorgan will pay a $125 million fine, while the CFTC fine will be $75 million.
“JPMorgan’s failures hindered several commission investigations and required the staff to take additional steps that should not have been necessary,” Sanjay Wadhwa, the SEC’s deputy director of enforcement, said in a statement. “This settlement reflects the seriousness of these violations. Firms must share the mission of investor protection rather than inhibit it.”
In a filing on Friday, JPMorgan acknowledged the settlement but declined to say further.
“As technology changes, it’s even more important that registrants ensure that their communications are appropriately recorded and are not conducted outside of official channels to avoid market oversight,” SEC Chair Gary Gensler said in the statement.
Measures Taken By JPMorgan
According to the CFTC, gaps were discovered as early as mid-2015!
And according to the agency it was seen that JPMorgan has taken important measures and action as they focused on record-keeping from January 2018 to November 2020.
Officials said the investigation is still underway and that they are encouraging businesses to self-report any breaches.
Comments are closed, but trackbacks and pingbacks are open.