US CFTC Set To Penalize JPMorgan $100M For Trade Reporting Flaws

JP Morgan Chase & Co. JPM shares are trading mildly higher on Thursday in the premarket session. 

The U.S. Commodity Futures Trading Commission is reportedly poised to unveil a $100 million settlement with the banking giant for trade reporting failures, Reuters reported, citing a source familiar with the matter.

Citing the same source, the report noted the bank has agreed to acknowledge, as part of the deal, that it violated the agency’s regulations. 

This admission, previously undisclosed, represents a victory for the CFTC, advocating for greater corporate responsibility in addressing misconduct, the report added.

A JPMorgan spokesperson declined to comment to Reuters but reiterated previous statements, noting self-reporting of the violation and absence of customer harm or misconduct.

Reuters added that JPMorgan previously settled with U.S. bank regulators for $348.2 million over a related issue. Regulators stated the misconduct spanned 2014 to 2023, highlighting inadequate monitoring of billions of trades across 30+ global venues.

Earlier this month, the bank disclosed in a regulatory filing its intention to reach a resolution with a third U.S. regulator, reportedly the CFTC, regarding the matter. 

The CFTC’s enforcement director, responsible for commodity and swap markets, outlined new agency policies last year, emphasizing the pursuit of admissions of wrongdoing, the report read. While financial firms often resist such admissions due to potential costs from private litigation, regulators argue they serve as crucial deterrents against misconduct.

Meanwhile, CNBC reported that the company’s chairman and CEO, Jamie Dimon, said that a “hard landing” for the U.S. cannot be ruled out.

The CEO was speaking at the JPMorgan Global China Summit in Shanghai.

When asked by CNBC’s Sri Jegarajah about the prospect of a hard landing, Dimon replied: “Could we actually see one? Of course, how could anyone who reads history say there’s no chance?” the media house said.

Price Action: JPM shares are trading higher by 0.20% to $198.71 premarket at last check Thursday.

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