JPMorgan Chase fined for violating securities control regulations
The financial institution must pay a fine of $ 135 million to the US stock exchange for alleged incursion in bad practices related to certificates of contribution in the country
JPMorgan Chase, a leader in financial operations and headquartered in New York, faces a fine of $ 135 million before the SEC, the US securities control body, after being accused of bad practices with certificates that allow foreign companies to quote on the country.
According to a statement issued by the regulator, the financial company product of the merger in 2000 between the Chase Manhattan Corporation and the J.P. Morgan & Co. would have breached its obligations on the American Depositary Receipts (ADRs).
These allow foreign corporations to trade in US territory without having to comply with regulatory requirements. The bank’s shortcomings in this regard allegedly encouraged abusive market practices that include short selling.
Although JPMorgan Chase has not acknowledged nor denied the accusations, it did indicate its willingness to pay back the acquired profits as well as pay the million dollar fine.
The entity is not the only one to be sanctioned for irregularities in ADR practices, as indicated by the SEC, which maintains control over the dynamics of the stock and financial market in the United States.
M.Pino
Source: Milenio
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