JPMorgan Chase (JPM) is paying $348 million in fines to US regulators for alleged failures to monitor the trading of its clients and employees, one of the largest such penalties paid by any lender so far in 2024.
The fines were imposed by the Federal Reserve and Office of the Comptroller of the Currency (OCC) in separate orders Thursday.
The OCC said JPMorgan “engaged in unsafe or unsound practices” and “failed to establish adequate governance over trading venues on which it is active.”
The Fed said the nation’s largest bank “failed to surveil billions of instances of trading activity on at least 30 global trading venues” between 2014 and 2023.
Both required a number of fixes. JPMorgan neither admitted nor denied the claims. Its stock was down more than 1% Thursday afternoon.
Last month, JPMorgan disclosed this issue in a filing to the SEC, stating that it had “not identified any employee misconduct, harm to clients or the market” and that it didn’t expect any disruption to client services. A spokesperson confirmed Thursday this is still the case.
JPMorgan also disclosed last month the firm was in advanced negotiations with a third US regulator, though “there is no assurance that such discussions will result in a resolution.”
The fines are one of the largest paid thus far this year by one of the big banks.
In the middle of January, Morgan Stanley (MS) paid $250 million in fines to the Justice Department and SEC to end a multiyear investigation into how it handled large “block” trades for clients between 2018 and 2021.
The bank admitted it made false statements in connection to some of those trades.
David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance.
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