J.P. Morgan Chase Fines for Recordkeeping Failures

J.P. Morgan Chase, one of the leading financial institutions, has announced that it will pay $350 million in fines to U.S. regulators due to recordkeeping failures in its corporate and investment bank. This resolution with two U.S. regulators will also include the requirement for remediation and the involvement of an independent consultant.

Identifying the Issue

The bank has identified that certain trading and order data within its corporate and investment bank was not being properly recorded in its trade surveillance platforms. This data gap was particularly significant for one venue, which mainly consisted of sponsored client access activity.

Responding to Inquiries

J.P. Morgan has been actively cooperating with government inquiries regarding its trading venue inventory processes and validation of data completeness. The bank is committed to addressing any concerns and ensuring that all necessary improvements are made.

Negotiations with a Third Regulator

While negotiations with two U.S. regulators are already underway, the bank has confirmed that it is also in talks with a third regulator. However, there are no guarantees regarding the outcome of these discussions.

Taking Action

In light of these developments, J.P. Morgan has already taken steps to enhance its corporate and investment bank's venue inventory and data completeness controls. Furthermore, additional remediation measures are currently being implemented as part of the bank's commitment to resolve the identified issues.

Ensuring Uninterrupted Client Services

Despite these challenges, J.P. Morgan assures its clients that there will be no disruption to their services. The bank remains dedicated to providing exceptional assistance and support to its valued clients throughout this process.

For further information, contact Ben Glickman.