JPMorgan Chase & Co. has been fined $348.2 million by two U.S. banking regulators for failing to implement a program to monitor corporate and customer trading activity for market fraud. The Federal Reserve announced Thursday.
The Fed, along with the Office of the Comptroller of the Currency (OCC), fined the bank and said the fraud occurred between 2014 and 2023.
In a separate statement, the OCC said JPMorgan failed to adequately monitor billions of trades across at least 30 trading venues around the world.
A bank spokesperson said the bank was made aware of the issue and is working to resolve it, and no disruption to existing customer service is expected.
Additionally, there was no evidence of employee misconduct or harm to customers or the broader market, the spokesperson added.
In February, JPMorgan said it expected to pay about $350 million in civil penalties for reporting incomplete trade data to monitoring platforms.
The company said at the time that it was “in advanced discussions” with an unnamed third regulator, but that a resolution may not be reached.
The settlement announced Thursday marks the bank’s second major fine in recent years over data management and oversight. In 2021, JPMorgan agreed to pay $200 million to settle civil lawsuits from two other regulators over record-keeping lapses, a move that comes as similar lapses continue to be filed across Wall Street. This is the first of a series of incidents.
Under the new OCC order, the bank must overhaul and improve its trade monitoring program and conduct an independent review of its policies.
New trading venues will need to obtain regulatory approval under the new order.
