JPMorgan fined nearly $350 million for inadequate trade reporting
Reuters
Published Mar 14, 2024 15:04
Updated Mar 14, 2024 20:32
By Pete Schroeder
WASHINGTON (Reuters) -JPMorgan Chase & Co has been fined $348.2 million by a pair of U.S. bank regulators over its inadequate program to monitor firm and client trading activities for market misconduct, the Federal Reserve announced on Thursday.
The Fed fined the bank alongside the Office of the Comptroller of the Currency (OCC), and said the misconduct occurred between 2014 and 2023. In a separate announcement, the OCC said JPMorgan (NYSE:JPM) failed to properly monitor billions of trades across at least 30 global trading venues.
A bank spokesperson said the firm self-identified the issue and is working to address the matter, and does not expect any disruption of existing client services. In addition, there was no evidence of employee misconduct or harm to clients or the broader market, the spokesperson added.
JPMorgan disclosed in February that it expected to pay roughly $350 million in civil penalties for reporting incomplete trading data to surveillance platforms. It said at the time it was also in "advanced negotiations" with a third unnamed regulator that may not result in resolution.
The settlement announced on Thursday marks the second sizeable fine in the last few years for the bank over its data management and monitoring. In 2021, JPMorgan agreed to pay $200 million to settle civil charges from two other regulators over record-keeping lapses, the first in a wave of cases over similar lapses across Wall Street.
Under the new OCC order, the bank must overhaul and improve its trade surveillance program and conduct a third-party review of its policies. It must clear any new trading venues with regulators under the new order.
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Written By: Reuters
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