JPMorgan to Pay $135 Million for Improper Handling of ADRs
- Firm is eighth penalized by SEC over mishandling of securities
- Bank didn’t admit or deny agency’s claims in settling case
Outside the JPMorgan Chase & Co. headquarters in New York, U.S.
Photographer: Scott Eells/Bloomberg
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JPMorgan Chase & Co. will pay $135 million to settle Securities and Exchange Commission allegations that it mishandled U.S. securities that represent shares of foreign companies, the latest bank fined in an industry crackdown on the practice.
The bank improperly provided what’s known as American depository receipts to brokers when neither the brokers nor their clients held shares in foreign companies that were required to support such transactions, the SEC said in a Wednesday statement.