JP Morgan Chase Fined $350M For 'Deficient Trade Surveillance'

The Board of Governors of the Federal Reserve and the Office of the Comptroller of the Currency (OCC) on Thursday announced nearly $350 million in civil money penalties against JP Morgan Chase & Co. JPM 

The OCC announced a $250 million penalty against JP Morgan Chase related to deficiencies in its trade surveillance program. The OCC said that it found that the bank "failed to surveil billions of instances of trading activity on at least 30 global trading venues," constituting unsafe or unsound banking practices.

The OCC also issued a cease and desist order requiring JP Morgan Chase to improve its trade surveillance program by seeking the OCC's non-objection before onboarding new trading venues and obtaining an independent third party to conduct a trade surveillance program assessment.

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The OCC's actions were coordinated with the Board of Governors of the Federal Reserve System, which also issued an enforcement action against JP Morgan Chase and fined the firm approximately $98.2 million for an inadequate program to monitor trading activities for market misconduct. 

The Federal Reserve Board's action requires JPMorgan Chase to review and correct the firm's "inadequate monitoring practices," which occurred between 2014 and 2023.

Should I Sell My JPM Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of JPMorgan Chase have increased by 43.76% in the past year. An investor who bought shares of JPMorgan Chase at the beginning of the year would make a profit of $15.89 per share if they sold it today. The stock has risen 6.78% over the past month, meaning an investor who bought shares on Feb. 1 would see a capital gain of $13.24.

JPMorgan Chase shares have an all-time high of $191.38, representing 1.81% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. JPMorgan Chase stock currently has an RSI of 80.72, indicating overbought conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

JPM Price Action: According to Benzinga Pro, JP Morgan Chase shares closed 1.74% lower at $188.05 on Thursday.

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