JPMorgan Chase (NYSE:JPM)
J.P. Morgan Securities, a division of JPMorgan Chase (NYSE:JPM), agreed on Thursday to pay $4 million to resolve an investigation into possible recordkeeping breaches conducted by the Securities and Exchange Commission. Following the settlement terms, the corporation will neither accept nor deny the conclusions of the SEC. As a result, JPM stock declined.
According to the allegations made by the SEC, the business made the error of erasing 47 million electronic communications from 8,700 email boxes between January 1, 2018, and April 23, 2018. Many of these communications were mandated to be preserved following broker-dealer recordkeeping regulations.
As a direct consequence of this, the corporation had been unable to furnish the records and communications required in connection with at least 12 civil investigations linked to securities, of which eight were carried out by staff members of the SEC.
According to the order issued by the SEC, the emails were erased when JPMorgan Chase (NYSE:JPM) workers started a project to remove older communications and documents that no longer needed to be kept because they were no longer relevant. JPMorgan Chase (NYSE:JPM) staff started deleting emails in June 2019, under the impression that all of the documents were encoded in a manner that would prevent the permanent deletion of data that were still within the 36-month regulatory retention window.
However, the vendor in question failed to implement the default retention settings in a specific domain, which resulted in “those communications, including many that were required to be maintained according to the broker-dealer recordkeeping rules, being permanently deleted,” according to the SEC. There is no way to retrieve the 47 million electronic messages sent or received by JPMorgan employees working in the Chase banking retail department.
During the trading session on Thursday afternoon, JPM stock fell by 1.5%, consistent with the trend seen in most other bank equities. There was a 1.8% decline in the KBW Nasdaq Bank Index value.
JPMorgan Chase (NYSE:JPM) agreed to pay a fine of $200 million in 2021 to satisfy claims that it failed to retain records when workers used their personal devices to speak with one another about company issues while using such devices.
Featured Image: Megapixl
