Excerpt from Reuters Article, Published on Mar 15, 2024


JPMorgan Chase & Co finds itself in the regulatory spotlight once again as it grapples with a hefty penalty of $348.2 million imposed by U.S. banking regulators. The Federal Reserve, in collaboration with the Office of the Comptroller of the Currency (OCC), announced the fine on Thursday, citing significant deficiencies in the bank’s monitoring of trading activities for potential market misconduct spanning nearly a decade from 2014 to 2023.

The OCC revealed that JPMorgan had failed to adequately oversee billions of trades across more than 30 global trading venues, exposing critical shortcomings in the bank’s compliance framework. This latest development follows JPMorgan’s admission in February of expecting civil penalties of approximately $350 million for incomplete trading data reporting to surveillance platforms, with negotiations ongoing with another undisclosed regulator.

In response to the regulatory scrutiny, a spokesperson for JPMorgan affirmed that the bank had internally identified the compliance lapses and is actively working towards remediation. Reassurances were provided to clients, asserting that services would continue without interruption, while emphasizing the absence of evidence indicating employee misconduct or adverse impacts on clients or the broader market. This latest penalty marks the second significant fine for JPMorgan in recent years related to data management and monitoring deficiencies. In 2021, the bank agreed to a $200 million settlement with two regulators for record-keeping lapses, signaling a recurring pattern of regulatory oversight across Wall Street.

Under the stipulations of the OCC order, JPMorgan is obligated to implement comprehensive reforms to its trade surveillance program and undergo an independent review of its compliance policies. Furthermore, the bank must seek regulatory approval for any future introduction of new trading venues, underscoring heightened regulatory scrutiny aimed at addressing compliance shortcomings within the banking sector.


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