New Front in Pre-taliation Fights

pre-taliation

The Securities and Exchange Commission has opened a new front in the war against pre-taliation clauses in corporate contracts, imposing an $18 million penalty on JP Morgan Securities for including pre-taliation clauses in confidential settlements with customers. The SEC announced the enforcement action on Monday, faulting JPMorgan for asking clients to sign confidential release agreements…

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JPMorgan Replies on Retaliation Claim

JPMorgan

We have an update on that lawsuit filed last year by a former compliance officer at JP Morgan, who says she was fired for raising concerns about weaknesses in the bank’s compliance program. JPMorgan has now filed a motion to dismiss, and depicts the former compliance officer as a terrible employee who was fired for…

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JP Morgan, Part II: The Consultant Agreement

JPMorgan

Today I want to revisit that enforcement action against JP Morgan from last week, because there’s more here that compliance officers need to consider. We need to talk about the compliance consultant JP Morgan has to hire as part of its settlement. In our first post about this scandal last Friday, we looked at the…

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JP Morgan Pays $200M on Recordkeeping Failures

JP Morgan

JP Morgan has agreed to pay $200 million to securities regulators for “widespread and longstanding failures” to preserve employee communications in the bank’s broker-dealer unit, where bankers routinely talked shop using WhatsApp, personal email accounts, and text messages on personal devices.  The bank will pay $125 million to the Securities and Exchange Commission, the agency’s …

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JPMorgan’s Compliance Benefit

JPMorgan

Well here’s something to take to the board as you’re planning the 2021 budget: the Justice Department hit JPMorgan this week with $920 million in penalties and disgorgement for commodities trading fraud — a penalty that could have been even larger but wasn’t, partly because the bank spent many millions improving its compliance program.  The…

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