JPMorgan Chase & Co. is nearing a deal to pay a $200 million fine and admit that it failed to properly monitor employees’ messages, the first settlement to emerge from a regulatory sweep into how banks oversee traders’ chats.
The investigations by the Securities and Exchange Commission and Commodity Futures Trading Commission focused on concerns that the bank didn’t have an adequate system for retaining the chats, according to people familiar with the matter. Banks are supposed to retain employees’ communications, particularly those related to customer dealings, and provide the information to regulators when requested.
The nation’s biggest bank is expected to complete the settlement as soon as this week, some of the people said.
Banks are required to record their employees’ work-related phone calls, emails and text messages. Those rules apply to communications on both company-issued devices and personal cellphones. Monitoring communications became more challenging during the pandemic when many bank employees began working from home.