🔥 Breaking News: SEC Fines JPMorgan as 47 Million Banking Records “Accidentally” Deleted
JUST IN: The US Securities and Exchange Commission (SEC) has imposed a significant fine on JP Morgan Chase in the aftermath of an unexpected incident. It appears that 47 million crucial banking records were “accidentally” deleted by the bank. 📉💥 Reuters reports that the imposed fine amounts to $4 million, primarily due to the deletion of emails related to retail banking groups.
The incident took place between January and April of 2018, with the deletion occurring in 2019. Shockingly, this massive loss of records impacted nearly 8,700 mailboxes, a staggering 7,500 of which belonged to JP Morgan’s employees.
JP Morgan Faces SEC Fine for Permanent Email Deletion
In a significant blow to one of the industry’s leading financial institutions, JP Morgan finds itself facing severe penalties from a US regulatory authority. The SEC has imposed a fine on the bank after an unintended and permanent deletion of 47 million banking records from its system.
The affected records primarily consist of tens of millions of emails exchanged among employees, serving as vital business records. According to SEC rules, the largest US bank was obligated to retain these emails for a period of three years.
The incident specifically occurred within JP Morgan’s corporate compliance technology department, where efforts were made to terminate conversations from the 1970s and 1980s. To handle the email storage, the bank had enlisted the assistance of an external vendor.
According to a cease-and-desist order, the vendor failed to execute the email deletion process correctly. Moreover, they neglected to apply the necessary three-year retention settings to “Chase” emails from early 2018.
The order further highlighted that during the troubleshooting process, all emails in that domain from the specified period, which were not under legal holds, were irreversibly deleted. In response to this development, JP Morgan issued a statement affirming its dedication to fulfilling its record-keeping obligations.
Regrettably, JP Morgan now finds itself unable to comply with “at least 12 civil securities-related regulatory probes, subpoenas, and document requests,” as the relevant communications have been permanently erased.
Stay tuned for further updates on this significant incident as the consequences unfold.
Note: The accidental deletion of such a vast number of banking records raises concerns about data management practices and regulatory compliance.
