JPMorgan Chase Agrees to Pay Penalties

The SEC charged JPMorgan Chase Co. with misstating financial results and lacking the effective internal controls to detect and prevent its traders from fraudulently overvaluing investments to conceal trading losses, resulting in a penalty of $200 million. As part of a coordinated global settlement, three other agencies also announced settlements with JPMorgan, including the UK Financial Conduct Authority, the Board of Governors of the Federal Reserve, and the Office of the Comptroller of the Currency. JPMorgan is paying a total of approximately $920 million in penalties to settle the charges, along with admitting facts underlying the charges and publicly acknowledging that it violated federal securities laws.

SEC Co-Director of Enforcement George Canellos released a statement regarding the case, saying, "At its core, today's case is about transparency and accountability." The SEC order also requires JPMorgan to cease and desist from causing any violations or future violations of Exchange Act Section 13 ("Periodical and Other Reports"), and Exchange Act Rules 13a-11 ("Current Reports on Form 8-K"), 13a-13 ("Quarterly Reports on Form 10-Q"), and 13a-15 ("Controls and Procedures").

See: SEC Order; SEC Press Release; Co-Director Canellos' Statement. See also: OCC Press Release; Federal Reserve Press Release; Comptroller Thomas Curry's Statement on the Settlement. Related News: Department of Justice Files Charges against Two Former JPM Traders in Connection with Multi-Billion Dollar Trading Loss (August 14, 2013) OCC and FRB Issue Cease and Desist Order against JPMorgan Chase, N.A. (January 14, 2013); FSA Investigates J.P. Morgan London Trading Losses (January 16, 2013).