Today, the SEC announced that it has brought a settled administrative proceeding against JPMorgan Chase & Co. The SEC charged the firm with “misstating financial results and lacking effective internal controls to detect and prevent its traders from fraudulently overvaluing investments to conceal hundreds of millions of dollars in trading losses.” Utilizing a new settlement policy under which the agency now demands that settling defendants admit to wrongdoing in certain “egregious” cases, the SEC required JPMorgan to admit to the facts underlying its charges, and to publicly acknowledge that it violated the federal securities laws.
