SEC fines JPMorgan Chase $4 million
JPMorgan Chase & Co. agreed to settle the dispute with the SEC and pay a fine of $4 million. So they will drop the Commission’s charges of erroneously deleting more than 47 million electronic records.
We are talking about emails and instant messages that were received by the bank from January 2018 to April 2018. By law, the company must keep them for at least 3 years. But in the given system there was a system failure, and the correspondence disappeared.
In 2019, the SEC filed a lawsuit accusing bankers of unreliable data storage. The Commission said that the deletion of the letters complicates the investigation of some cases.
“Because deleted records cannot be recovered, it is not known how the lost records may have affected regulatory investigations,” the complaint reads.
JPMorgan does not acknowledge or deny the regulator’s allegations.
Interestingly, in 2021, the bank already had a fine on a similar charge. They paid $125 million to the SEC and $75 million to the Commodity Futures Trading Commission to remove work messages from WhatsApp.
In 2005, JPMorgan paid $700,000 for violations of electronic records retention rules. This lawsuit concerned files created in the early days of the Internet in 1999 and 2002.
Recall that yesterday the Binance crypto exchange filed a lawsuit against the SEC. They accuse the regulator of slandering the topic of offshore companies.
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