JPMorgan Guilty Admission a Win for SEC’s Policy Shift The U.S. - TopicsExpress



          

JPMorgan Guilty Admission a Win for SEC’s Policy Shift The U.S. Securities and Exchange Commission, in settling claims with JPMorgan Chase & Co. (JPM) over its handling of a $6.2 billion trading loss, landed its biggest victory yet in fulfilling a pledge to force wrongdoers to admit guilt. As part of the $920 million agreement with regulators in the U.S. and U.K., New York-based JPMorgan admitted yesterday that it violated federal securities laws when it failed to catch traders hiding losses in 2012. “It’s no small thing to go from getting no admissions six months ago to this,” said James Cox, a law professor at Duke University School of Law in Durham, North Carolina. “It’s a useful shaming process. It has an impact on the behavior of other people.” Under SEC Chairman Mary Jo White, 65, the enforcement division has shifted its long-standing policy of allowing defendants to settle matters without admitting or denying any wrongdoing. The practice had been thrown into question when U.S. District Judge Jed Rakoff rejected a settlement with Citigroup Inc. in part because the bank didn’t admit to any misconduct. Read more: Bloomberg News
Posted on: Fri, 20 Sep 2013 11:29:10 +0000

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