JPMorgan and Others Face Millions in Fines For New Violations

October 2, 2023

JPMorgan and others face millions in fines for new trading violations according to Wall Street on Parade.

The Commodity Futures Trading Commission (CFTC) fined three of the largest trading houses on Wall Street a combined $53 million for derivative reporting violations.

Those trading houses were units of Goldman Sachs, Bank of America, and JPMorgan Chase.

“But what was particularly tone deaf about the CFTC’s settlement with JPMorgan Chase was the tiny amount of the monetary fine and the praise heaped on the five-count felon bank for its “cooperation” with the federal regulator”, says WoP.

According to the CFTC, over a period of five years, spanning 2017 to 2022, JPMorgan Chase Bank and two of its units “failed to report, or failed to correctly report, more than 40 million swap transactions.”

“The fine was a pathetic $15 million in total for the three JPMorgan units, meaning it cost this global behemoth just 37 ½ cents per law violation,” says the journal.

“Last year, JPMorgan Chase reported $37.7 billion in net income. A fine of $15 million for 40 million violations of law is something that traders will make jokes about around the water cooler.“

In September, JPMorgan, Goldman Sachs, UBS and Morgan Stanley agreed to collectively pay $499 million to end a suit, which was filed in 2017 by US pension funds, led by the Iowa Public Employees’ Retirement System.

“The pension funds accuse the banks of trying to corner the market with their own system called EquiLend, while hindering the development of new platforms that would execute the borrowing and lending of electronic securities,” reports DH.

JPMorgan has been heavily scrutinized for its numerous scandals involving customer account halts, login and ATM issues, and most recently its scandal with Jeffrey Epstein.

Other JPMorgan Chase News Today

Chase has now closed the most branches with more scheduled to shutter by the end of the year.

Thousands of banks have shut down in the US last year, but one has stood apart from the pack with the most closures, says The-Sun.

“Banks are closing branches faster than they’re opening new ones.

U.S. banks closed over 3,000 branches last year while opening just 1,000.

JPMorgan Chase led in branch closures last year, shuttering 144 branches, while opening 133.

The trend will likely continue as banks face staunch competition for deposits and younger customers from online banks, fintech firms and Big Tech,” reports Kiplinger.

Between 2017 and 2021, more than 7,000 branches were closed in the U.S., which represents 9% of all locations.

One-third of these closures have been in areas with large minority populations.

“The initial wave of closures was sparked by mergers and acquisitions in the wake of the 2008 financial crisis.

More recently, changing consumer preferences and improved banking tech are the reasons given for ditching brick-and-mortar locations.

It shows that big-bank investment in tech is paying off, as new apps and websites with an expanding array of services have lured more customers.”

Although Chase is leading bank closures, the bank has stated that it plans to open new branches as well.

A spokesperson for the company told The U.S. Sun that the bank has made “significant investments in new branches, adding more than 650 over the last five years, including delivering on our commitment to build 400 branches in 25 new states.”

Below is a list of bank branches Chase will be closing this year.

Also Read: More US Banks Are Now Freezing and Closing Accounts

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