JPMorgan Chase will pay $2.8 million (£2.08 million) to settle charges that a broker-dealer unit lacked sufficient controls to safeguard customer securities from several countries over more than eight years, a U.S. regulator said on Wednesday.
Reuters reports that The Financial Industry Regulatory Authority said JPMorgan Clearing Corp created hundreds of millions of dollars of deficits by violating U.S. rules designed to thwart the improper commingling of assets.
Such rules are intended to avoid delays in returning customer securities, or the inability to make customers whole, when broker-dealers fail.
FINRA said the violations occurred from March 2008 to June 2016, and stemmed in part from defective electronic systems that JPMorgan inherited from Bear Stearns Cos, the investment bank it bought in May 2008 in a government-arranged fire sale.
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