- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-03-14T19:01:00
JPMorgan Chase will pay approximately $348.2 million in fines to settle allegations laid by two federal banking regulators that it failed to adequately monitor trading and order activity.
The Treasury Department’s Office of the Comptroller of the Currency (OCC) issued a $250 million penalty against the bank Thursday, while the Federal Reserve Board announced a fine of nearly $98.2 million as part of a consent order, both related to JPMorgan’s alleged failure to surveil “billions” of transactions on 30 trading venues.
JPMorgan, which disclosed the impending fines in a regulatory filing in February, said it had “self-identified that certain trading and order data through the CIB (corporate and investment bank) was not feeding into its trade surveillance platforms.” The bank said then that it was in advanced negotiations with a third, unnamed regulator regarding the matter.
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Two affiliates of JPMorgan Chase have agreed to pay $151 million to settle five separate enforcement actions for making misleading disclosures, breaching fiduciary duties, and other failures related to investors.
A subsidiary of JPMorgan Chase will pay an additional $100 million to the Commodity Futures Trading Commission to settle charges it failed to adequately monitor and supervise its trading system.
JPMorgan Chase said it expects to pay an additional $100 million to an unnamed regulator to settle alleged trade surveillance failures that have already warranted more than $348 million in penalties by two other agencies.
The U.K. Financial Conduct Authority fined the London branch of Australian-based Macquarie Bank Limited more than 13 million pounds (U.S. $16.3 million) for “serious control failures” that allowed a trader to conceal hundreds of fictitious trades over a 20-month period.
French defense and aviation contractor Thales Group is under investigation by authorities in the U.K. and France for allegedly participating in bribery and corruption.
Hedge fund manager Scott Bessent, named by Donald Trump on Friday as his nominee for Treasury Secretary, has a clear mandate to deregulate the financial markets should he take the helm.
