Cayman Islands, Caribbeanand International News
Tuesday, Mar 28, 2023

JPMorgan fined $200M for employees' use of WhatsApp, personal devices to discuss business matters

JPMorgan fined $200M for employees' use of WhatsApp, personal devices to discuss business matters

A compliance consultant will also review JPMorgan's policies and procedures relating to employee communications and make recommendations

JPMorgan Chase has agreed to pay $200 million in fines imposed by the Securities and Exchange Commission and Commodity Futures Trading Commission for failing to keep track of its employees' personal communications about business matters.

From at least January 2018 through November 2020, JPMorgan employees, including managing directors and other senior supervisors, allegedly exchanged thousands of messages through text, WhatsApp and personal email accounts about securities matters, including investment strategy, discussions of client meetings and communications about market color, analysis, activity trends or events, according to the SEC.

The agency noted that no record of the communications were preserved by the investment bank as required under federal securities laws and that JPMorgan admitted its failures were companywide and that its practices were not hidden.

"JPMorgan received and responded to commission subpoenas for documents and records requests in numerous commission investigations during the time period that it failed to maintain required securities records relating to the business," the SEC's order states. "In responding to these subpoenas and requests, JPMorgan frequently did not search for records contained on the personal devices of JPMorgan employees relevant to those inquiries.

"JPMorgan’s record-keeping failures impacted the commission’s ability to carry out its regulatory functions and investigate potential violations of the federal securities laws across these investigations"

As a result, JPMorgan will pay $125 million to resolve the SEC's charges and has agreed to hire a compliance consultant to review its policies and procedures regarding employee communications and make recommendations for improvements. It will also pay $75 million to the CFTC to settle charges from its separate investigation into the matter.

Prior to the SEC and CFTC's actions, the investment bank enhanced its policies and procedures and increased training relating to the use of approved communications methods, including personal devices. It also made significant changes to the technology available to employees. A JPMorgan spokesperson declined to comment.

The SEC emphasized that it is launching additional investigations into record preservation practices by other financial firms.


Related Articles

AOC explains why she opposes banning TikTok
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Gordon Moore, a co-founder of Intel Corporation, died at 94
Powell: Silicon Valley Bank was an 'outlier'
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
If this was in Tehran, Moscow or Hong Kong
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Mexican President Claims Mexico is Safer than the U.S.
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Don Lemon, a CNN anchor, has provided a list of five areas that he believes the black community needs to address.
Hello. Here is our news digest from London.
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
U.S. Jet Shoots Down Flying Object Over Canada
Being a Tiktoker might be expensive…
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT