JPMorgan Chase will pay a total of $448 billion to US regulators for failing to monitor potential market misconduct on billions of transactions in its global trading operation.
In a filing with the U.S. Securities and Exchange Commission (SEC), the banking giant says it has made a deal with an unnamed US regulator that will add an additional $100 billion in penalties 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 regulatory agencies accused JPMorgan of engaging in “unsafe or unsound” banking practices, saying that the lender’s corporate and investment bank 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 clients to detect potential market misconduct on billions of trading activities on at least 30 global trading venues.
Now, the banking giant says it’s paying an additional $100 million “after offsets for amounts paid to the OCC and FRB” to another US regulator to settle a separate enforcement action involving the same issue.
While JPMorgan does not name the third regulator involved, the firm says it “self-identified that certain trading and order data” at its Corporate & Investment Bank (CIB) was not feeding into its trade surveillance platforms.
The firm says it’s now determined to continuously enhance the reliability of its trade infrastructure and maintain rigorous controls.
Data from the Violation Tracker, a comprehensive corporate misconduct database, shows that JPMorgan has paid nearly $40 billion since 2000 to resolve 277 enforcement actions and lawsuits involving toxic securities abuses, banking violations, investor protection violations and other offenses.
The New York-based bank made $49.6 billion in net income last year.
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