JPMorgan Chase & Co. (NASDAQ:JMGXZ) Files An 8-K Other EventsItem 8.01 Other Events.
JPMorgan Chase & Co. (“JPMC” or the “Firm”) announced on November 17, 2016, that it had entered into 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 those agencies’ respective investigations relating to a former hiring program for candidates referred by clients, potential clients and government officials in the Asia Pacific region. The program was terminated by the Firm in 2013.
Under the settlement agreement with the DOJ, JPMorgan Securities (Asia Pacific) Limited (“JPMSAPL”), a Hong Kong-based wholly-owned subsidiary of the Firm, entered into a Non-Prosecution Agreement to which JPMSAPL will pay a monetary penalty of $72 million to the DOJ, and the Firm agreed to certain terms and obligations as set forth therein. The DOJ has also separately advised that, based upon the information known at this time, it has closed its inquiry regarding JPMSAPL’s use of consultants in the Asia Pacific region. Under the terms of the settlement agreement, which will be in effect for three years, no criminal charges will be brought against JPMSAPL or the Firm for conduct described in the agreement, provided that both comply with their respective obligations.
In addition, the Firm will pay approximately $106 million in disgorgement, and $25 million in prejudgment interest, to its civil resolution with the SEC, and will pay a fine of approximately $62 million under its civil resolution with the Federal Reserve. The Firm has previously reserved for all three of the settlements. In each of the settlement agreements, the DOJ, SEC and Federal Reserve acknowledged the Firm’s cooperation in their respective investigations.
Other related investigations are ongoing. The Firm continues to cooperate with these investigations.
The complete settlement agreements, including the Firm’s obligations under each, can be accessed at the DOJ, SEC and Federal Reserve websites at www.justice.gov, www.sec.gov, and www.federalreserve.gov, respectively.
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