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JP Morgan fined by SEC for deleting email records

theregister.com

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Re: JP Morgan fined by SEC for deleting email records

#211

Post by burkaman »

Cthulhu_ wrote: post #50
danuker wrote: post #40

Earlier quoted context omitted.

The SEC is not in the justice business. It is a puppet of the banks themselves. A $4M fine is NOTHING for a company netting $12.62B a QUARTER.

The $4M is a slap on the wrist, but if there's evidence that it was done on purpose, and the deleted data is evidence for a bigger case, they'd be in much bigger trouble still. But, innocent until proven guilty; if there's no indication of any missing evidence, it'll stay at the failure to retain data fine.

> In at least twelve civil securities-related regulatory investigations, eight of which were conducted by the Commission staff, JPMorgan received subpoenas and document requests for communications which could not be retrieved or produced because they had been deleted permanently.

That is proof of missing evidence.

Re: JP Morgan fined by SEC for deleting email records

#212

Post by dragonwriter »

gmd63 wrote: post #204
JumpCrisscross wrote: post #197

Earlier quoted context omitted.

> crime was identified, which is why JP Morgan was fined The SEC is a civil agency. No crimes. > organization is required to be run properly It’s that easy? Just require good organization and you’ll get it by diktat? This entire thread seems to require a reading of Argentinian and modern Egyptian and Russian economic history.

Evidently you don't get well run organizations by simply having legislation, which is my point. We do not enforce that legislation appropriately. I'm confused by your point regarding the SEC, how are they allowed to fine a company without legal basis? If my use of the word "crime" means something different to you, I mean "crime" as anything that breaks the law.

> I'm confused by your point regarding the SEC, how are they allowed to fine a company without legal basis?

There is a legal basis: retention requirements of the Securities Exchange Act of 1934.

From the SEC order: “As a result of the conduct described above, JPMorgan willfully violated Section 17(a) of the Exchange Act and Rule 17a-4(b)(4) thereunder, which require brokerdealers to preserve for at least three years originals of all communications received and copies of all communications sent relating to its business as such.”

Re: JP Morgan fined by SEC for deleting email records

#213

Post by NickC25 »

cornercasechase wrote: post #132
NickC25 wrote: post #48

Earlier quoted context omitted.

For sure. This is bad faith 101 from JPMC, and I don't really think they'll care if they get a slap on the wrist. 4 million dollar fine IIRC. The government's agencies that have this data should release it to the American public as a public service. JMPC is no longer under investigation for Epstein - they paid a fine and that's that, sadly. Mr. Dimon doesn't want to testify again, because there's a high chance the Fe…

> JMPC is no longer under investigation for Epstein. Yes they are, JPMC is still being sued by the Virgin Islands government. They have a settlement that still needs to be approved with the victims.

Ah, you're right about that. I thought the 200-million odd settlement announced a few weeks back was the same thing. It's not.

Hope the USVI gets all they are asking for and then some. The way Dimon testified it's so obvious he knew what was up - I mean, he worked with Jes Staley for nearly a decade, and promoted him to the head of JPMC's investment bank. There's no way in hell a guy in such a position who has a personal client transacting billions of dollars with former and current heads of state (including multiple former or future US Presidents), Fortune 50 CEOs, famous academics and also was convicted of sex trafficking in 2006 can hide that all from his boss. I don't believe that for a second.

Re: JP Morgan fined by SEC for deleting email records

#214

Post by pnemonic »

gmd63 wrote: post #205
Cthulhu_ wrote: post #50

Earlier quoted context omitted.

The $4M is a slap on the wrist, but if there's evidence that it was done on purpose, and the deleted data is evidence for a bigger case, they'd be in much bigger trouble still. But, innocent until proven guilty; if there's no indication of any missing evidence, it'll stay at the failure to retain data fine.

I think corporations of "too big to fail" stature should have different legal protections than what are offered to humans. Innocent until proven guilty is not quite fair to apply to corporations that get bailed out by taxpayers when the policemen are driving bicycles trying to enforce the speed limit on a highway full of McLarens. When a company has positioned itself to be a critical organ of society, it should be re…

The rules of nature do not forgive a well meaning hare that didn't intend to be eaten by a lion.

I love this. Consider yourself quoted.

Re: JP Morgan fined by SEC for deleting email records

#216

Post by giantg2 »

36479669thrw wrote: post #144
giantg2 wrote: post #129

Earlier quoted context omitted.

I find the story or incorrect archive settings/setup to be reasonably plausible and even likely. I work in finance and misconfiguration of systems are not that uncommon. Testing and reviewing archive settings is often not very thorough. For example, I was working on a system that handles holdings and trading information at the fund level which covers AUM that starts with a T and ends in rillions. There was an SQL inj…

> I find the story or incorrect archive settings/setup to be reasonably plausible and even likely. I work in finance and misconfiguration of systems are not that uncommon. Testing and reviewing archive settings is often not very thorough. GP's point stands: they should be fined to a degree that it becomes clear to management that these "not uncommon" practices must become very uncommon.

I'm not saying they shouldn't. But it's a leap to attribute to malice what is easily explained by ignorance.

Re: JP Morgan fined by SEC for deleting email records

#217

Post by giantg2 »

kindatrue wrote: post #138
giantg2 wrote: post #129

Earlier quoted context omitted.

I find the story or incorrect archive settings/setup to be reasonably plausible and even likely. I work in finance and misconfiguration of systems are not that uncommon. Testing and reviewing archive settings is often not very thorough. For example, I was working on a system that handles holdings and trading information at the fund level which covers AUM that starts with a T and ends in rillions. There was an SQL inj…

>I asked if they ever tested the backups... no. THIS. I briefly worked for a major European bank. There was a system that was backed up on tape. The way they checked the backups was to visually look at the tape spool - before sending the tapes off to a mountain to be preserved. One day, they needed something from a back up. Sure enough, the tapes were simply blank due a bug in the back up script.

"The way they checked the backups was to visually look at the tape spool"

Lol

Re: JP Morgan fined by SEC for deleting email records

#219

Post by lwkl »

TheOtherHobbes wrote: post #108
kris_lujanovic wrote: post #72

As someone who worked in finance I call b.s. When you need to do any infrastructure change not to mention data manipulation it takes million signatures and meetings. Like 13 meetings to deal with one ex employee corporate cloud folder. Unless they end up in court. Then somehow million things happen on their own in their benefit.

Also backups. This is just corporate "The IT dept ate my homework." It's a ridiculous excuse, "punished" with a trivial fine.

Backing up the email database is probably a bad idea for an org like this, because they have data that isn’t allowed to be backed up.

I had a customer that got accidentally sent confidential data to the wrong email address and it was backed up for multiple months. In the end we left it in there but they considered deleting all the backups that contained this email.

That is a good reason for having short lived backups and an archiving solution with retention policies emails.

Re: JP Morgan fined by SEC for deleting email records

#220

Post by alephnerd »

agentgumshoe wrote: post #160
mulletbum wrote: post #90

Earlier quoted context omitted.

As someone who does this work, I agree. This sounds like a IT Operations messed something up on its way to the people who do the lawyer work. Never had it happen to us, but I could see me handing something off to others in the Operations Org and having accidents happen.

This sounds like something that would occur in an industry not heavily regulated. That's not JPM.

Regulation =/= Implementation Capability

The implementers and auditors themselves get bogged down by red tape and/or the game of telephone between various departments, leading to information and Acceptance Criterias falling between the cracks.

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