JPMorgan Chase to Pay $100 Million Fine and Admit Guilt in Settlement with US Regulator
JPMorgan Chase, one of the world’s largest banks, has made a rare admission of guilt and agreed to pay a $100 million fine to settle with a US market regulator. The Commodity Futures Trading Commission (CFTC) found that the bank failed to properly monitor billions of orders from its traders and clients, neglecting to detect market misconduct as required. This settlement comes after JPMorgan Chase already agreed to pay $348 million to the Office of the Comptroller of the Currency and the Federal Reserve Board for the same violations.
As part of the agreement, the CFTC will reduce an initial $200 million settlement fee to $100 million once the previous payments are complete. The settlement also includes the appointment of a consultant to ensure remediation. The CFTC hopes that this resolution will serve as a clear message to all CFTC registrants that they must take appropriate steps to ensure the proper monitoring of trade and order data.
While JPMorgan Chase has not released a statement about the new fine, the bank has previously claimed that it self-reported the violations and believes that its actions did not harm customers. However, the bank has faced significant fines in the past, having paid a total of $39.68 billion in fines to resolve various enforcement actions, including securities abuses, banking violations, investor protection violations, and other offenses.
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