This happened the same week CEO Jamie Dimon was given a “surprise” retention bonus of 1.5 million shares. What message does this send to employees, customers, and shareholders?
The brokerage arm of JPMorgan Chase & Co. on Friday agreed to pay $200 million in fines and admit that it failed to keep track of employees’ use of personal messaging apps that circumvented record-keeping requirements.
The Securities and Exchange Commission said its fine, $125 million, is the largest ever for a breach of rules requiring brokerages to retain most communications so the data can be monitored internally and made available to regulators.
The SEC said the breakdown was widespread and hindered some enforcement investigations, which often make use of what individuals write in emails and other messaging channels. JPMorgan also will pay $75 million to resolve a parallel investigation by the Commodity Futures Trading Commission, according to that agency. The Wall Street Journal reported earlier this week that the bank would pay a likely total fine of $200 million. A JPMorgan spokesman declined to comment.JPMorgan Fined $200 Million Over Employees’ Use of WhatsApp and Other Messaging Apps – WSJ