Summary
JPMorgan Chase & Co. (JPM) announced on November 17, 2016, that it has reached settlements with the U.S. Department of Justice (DOJ), the U.S. Securities & Exchange Commission (SEC), and the Board of Governors of the Federal Reserve System (Federal Reserve) to resolve investigations into a former hiring program in the Asia Pacific region. This program, which involved candidates referred by clients, potential clients, and government officials, was terminated by the firm in 2013. The settlements include a $72 million penalty from the DOJ under a Non-Prosecution Agreement with its subsidiary, JPMorgan Securities (Asia Pacific) Limited (JPMSAPL). Additionally, JPM will pay approximately $106 million in disgorgement and $25 million in prejudgment interest to the SEC, along with a $62 million fine to the Federal Reserve. The company has already reserved for these amounts and noted that all three agencies acknowledged JPM's cooperation.
Key Highlights
- 1JPM reached settlements with DOJ, SEC, and Federal Reserve related to a former Asia Pacific hiring program.
- 2The program involved candidates referred by clients, potential clients, and government officials.
- 3The DOJ settlement involves a $72 million penalty for subsidiary JPMSAPL under a Non-Prosecution Agreement.
- 4The SEC settlement requires JPM to pay $106 million in disgorgement and $25 million in prejudgment interest.
- 5The Federal Reserve settlement includes a fine of approximately $62 million.
- 6The firm has already reserved for the total settlement amounts.
- 7DOJ, SEC, and Federal Reserve acknowledged JPM's cooperation with the investigations.