JPMorgan Chase Admits Fault in SEC Settlement
- September 23, 2013
- The Frankowski Firm
The latest news regarding JPMorgan Chase is that the SEC fulfilled their pledge to force them to admit their wrongdoing according, to a recent InsuranceJournal.com article. JPMorgan admitted, as part of a $920 million dollar agreement, that it violated federal securities laws when it failed to catch traders hiding losses in 2012, according to the article. The SEC, under Chairman Mary Jo White, has revamped their previous policy of allowing defendants to settle without admitting or denying any wrongdoing and now focus on having the wrong doer admit their fault. In February 2013, U.S. District Judge Jed Rakoff rejected a settlement with Citigroup Inc. in part because their was not an admission of guilt. Read more about Judge Rakoff’s decision in our blog post from February 13, 2013. This settlement, with the admission of fault, was narrowly approved 2-1 by the SEC commissioners who were eligible to vote on the matter, according to the InsuranceJournal.com article. In the past, the argument that an admission of fault would breed private lawsuits has been persuasive. However, an SEC spokesperson, quoted in the article, stated that the admission would not “disadvantage JPMorgan in a private lawsuit.” If you or someone you know has lost money as a result of an investment, please contact Richard Frankowski at 205-747-1903 to discuss your potential legal remedies.