JPMorgan Censured by SEC Over Supervision Lapse of Security-Trading Unit

The US Securities and Exchange Commission has censured JPMorgan Chase & Co. over supervision lapses in its securities unit.

The bank allegedly failed to detect that one of its security-backed swaps traders had been previously fined by UK authorities and wasn't supposed to trade in the US without special permission.

The alleged violation occurred from late 2021 to early 2024, during which time the firm's securities unit didn't establish and maintain a system to supervise statutorily disqualified persons, according to the SEC cease-and-desist order issued on Friday.