JPMorgan Chase will pay a total of $448 billion to U.S. regulators for failing to monitor potential market misconduct in billions of trades in its global trading operations.
In a filing with the U.S. Securities and Exchange Commission (SEC), the banking giant says it has struck a deal with an unnamed U.S. regulator that will add another $100 billion in fines to a $348 billion enforcement action by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board (FRB).
In March, the two regulators accused JPMorgan of engaging in “unsafe or unsound” banking practices, saying the lender’s corporate and investment banking division had significant gaps in its trade surveillance program. According to the OCC, the bank failed to properly monitor the actions of its traders and customers to detect potential market misbehavior in billions of trading activities on at least 30 global trading platforms.
Now the banking giant says it will pay an additional $100 million “after offsets for amounts paid to the OCC and FRB” to another U.S. regulator to settle a separate enforcement action related to the same matter.
While JPMorgan does not name the third regulator involved, the company says it “self-determined that certain trading and order data” at its Corporate & Investment Bank (CIB) did not impact its trade surveillance platforms.
The company says it is now committed to continuously improving the reliability of its trading infrastructure and maintaining strict controls.
Data from the Violation Tracker, a comprehensive database of corporate misconduct, shows that JPMorgan has paid nearly $40 billion since 2000 to resolve 277 enforcement actions and lawsuits related to toxic securities misuse, banking violations, investor protection and other violations.
The New York-based bank earned $49.6 billion in net income last year.
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