US regulators fined US bank JPMorgan Chase almost $350 million on Thursday for what they described as insufficient trading reporting and surveillance.
The US Federal Reserve and the Office of the Comptroller of the Currency (OCC) assessed the fines in response to problems with the trading program of the country’s largest bank between 2014 and 2023, the Fed said in a statement.
JPMorgan was fined around $98.2 million by the Federal Reserve for operating “an inadequate program to monitor firm and client trading activities for market misconduct.”
In a separate statement, the OCC announced it had issued a $250 million civil penalty against the bank after finding it “operated with gaps in trading venue coverage and without adequate data controls required to maintain an effective trade surveillance program.”
“As we disclosed last month, we self-identified the issue, significant remedial actions have been taken and others are underway,” a JPMorgan spokesperson told AFP by email.
“We have not found any employee misconduct or harm to clients or the market in our review of the previously uncaptured data,” they continued, adding: “We do not expect any disruption of service to clients as a result of these resolutions.”
JPMorgan Chase is now needed “to review and take corrective action to address the firm’s inadequate monitoring practices,” according to the Fed statement, following Thursday’s steps.
The bank was also compelled by the OCC’s efforts to enhance its trade surveillance program and to obtain approval prior to “onboarding new trading venues.”
