JPMorgan Chase's brokerage arm will pay $4 million to settle with the U.S. Securities and Exchange Commission (SEC) over the accidental deletion of 47 million electronic messages it was required to retain.
According to the regulator, the deletion, which took place in 2019 and was self-reported by the bank in 2020, violated rules that mandate retaining messages for three years. "Because the deleted records are unrecoverable, it is unknown—and unknowable—how the lost records may have affected the regulatory investigations," the SEC said. In 12 investigations, including eight directly involving the SEC, JPMorgan was unable to produce communications that were sought because they were no longer there.
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