Citing a confidential document of the US government, The New York Times said that the US Securities and Exchange Commission (SEC) had launched an investigation into the employment of children of senior officials of China by JPMorgan Chase Bank to find out whether these employment behaviors helped them to obtain profitable business in China. The SEC is still searching JPMorgan Chase's "employment of specific former employees in Hongkong and business relationship between the company and specific customers" and asking him to testify who decided to hire Zhang Xixi. In addition to Zhang, the SEC also asked to know all employees related to the Ministry of Railways of China who were employed by JPMorgan Chase in the past six years.
According to The New York Times, the US authorities are conducting a bribery investigation on investment bank JPMorgan Chase (commonly known as Xiao Mo in the industry) to find out whether he got the opportunity to engage in related business in China by hiring the children of senior China officials, including Zhang Xixi, the daughter of Zhang Shuguang, the former director of the Transportation Bureau of the Ministry of Railways. The U.S. Department of Justice is investigating whether JPMorgan Chase manipulated the electricity market, which means that the bank, which has already faced a mountain of judicial proceedings and regulatory investigations, may face new charges.
From the huge trading loss of 20 12 "London Whale" to the employment scandal in Hong Kong last weekend, JPMorgan Chase is facing a series of accusations. The Wall Street Journal previously reported that JPMorgan Chase is facing six investigations by the US Department of Justice, and his future legal expenses may be $6.8 billion higher than the budget.
20 13 In July, Xiao Mo agreed to pay USD 4 10/00000 to reach a settlement with the US Energy Regulatory Commission (FERC), which accused JPMorgan Chase of improperly obtaining overpayments from power operators in California and the Midwest during the period of 20 10 to 2010. The Wall Street Journal quoted sources as saying that just as JPMorgan Chase was close to reaching a civil lawsuit settlement with FERC, the US Department of Justice decided to investigate its behavior in the energy market. It is not clear whether the US Department of Justice will file a civil or criminal lawsuit.
Preet Bharara, the Manhattan District Attorney who led the investigation, also filed criminal charges against two former traders in London's chief investment office in JPMorgan Chase, saying that they concealed the trading losses of "London Whale" at that time, which eventually caused the bank to suffer losses of more than $6 billion.
The US Department of Justice's investigation of JPMorgan Chase's energy business also reflects that US regulators are paying attention to spot commodity trading on Wall Street. The Federal Reserve and some members of Congress questioned the improper profits of banks from their ownership of power plants and other spot assets. Last month, JPMorgan Chase said it would seek to sell spot commodity assets, including metal warehouses, until it bought and sold oil, natural gas, electricity and coal trading platforms. 20 14, 1717 October, JPMorgan Chase agreed to pay USD 6,543.87 billion to settle the allegations that the bank failed to monitor customers' money laundering activities as required by law when handling Madoff's account and failed to warn investors about Madoff's fraud.
The settlement agreement includes a two-year "deferred prosecution agreement", in which JPMorgan Chase acknowledged the loopholes in its anti-money laundering mechanism and agreed to improve it, but it will be exempted from criminal charges. None of the bank's top executives have been prosecuted.
Madoff is the mastermind of the biggest Ponzi scheme in American history. For decades, he defrauded investors of tens of billions of dollars. In 2009, it was sentenced to 150. In the last few years before the fraud case was exposed, JPMorgan Chase was Madoff's main bank.
Most of the fines paid by JPMorgan Chase were paid to the victims of the Madoff case. 20 14 In April, the Federal Deposit Insurance Corporation (FDIC) sued the world's largest 16 banks, accusing them of manipulating the London Interbank Offered Rate (LIBOR) and deceiving dozens of bankrupt banks.
The accused targets include Bank of America, Citigroup, Credit Suisse, Deutsche Bank, HSBC Holdings, JPMorgan Chase, Royal Bank of Scotland, ABN Bank of America, Rice Bank Group, Societe Generale, the Central Treasury of Agriculture and Forestry, Royal Bank of Canada, Mitsubishi UFJ Bank and Westbank.
This is a recent lawsuit accusing financial institutions of conspiring to manipulate LIBOR. As the global benchmark interest rate, LIBOR affects the global asset price of $550 trillion and financial products from mortgage to financial derivatives. 20 14 10 10 2, JPMorgan Chase Bank admitted that in a recent cyber attack, the information of 76 million home users and 7 million small business users was stolen. According to regulatory documents submitted by JPMorgan Chase, this cyber attack occurred this summer, and the number of people affected accounted for a quarter of the US population. It is said that hackers in southern Europe gained access to dozens of servers in JPMorgan Chase, stole personal information such as names, addresses, telephone numbers and e-mail addresses of bank customers, and the internal information of banks related to these users was also leaked.
However, JPMorgan Chase stressed that there was no evidence that customer account information, including account number, password, user name, birthday and social security number, was stolen in this attack, and no "abnormal customer fraud" related to this cyber attack was found.
Due to the large number of people affected and the wide range of influence, the hacking of the largest bank in the United States still attracts attention from all walks of life to increasingly complex and sophisticated cyber crimes. Tal Klein, a network security expert, believes that this incident may hit the confidence of the outside world in bank security. "The criminals can get the identity of 83 million enterprises and individuals from it, which is the biggest concern." Even more disturbing, it is reported that hackers also stole a list of applications in JPMorgan Chase, and the applications in the list are running on every standard computer in the bank. Through this list, hackers can cross-check the known vulnerabilities of each program and find the entry point to re-invade the bank network. It will take several months for JPMorgan Chase to completely replace these applications, which means that hackers have enough time to "dig" in the bank's network system, look for loopholes that have not been repaired or discovered, and then invade again.
On 201410/4, a spokesman for JPMorgan Chase said that although these customers were leaked, the company would not inform those customers whose information was leaked. The spokesman did not explain why JPMorgan Chase made such a decision. At least the attorneys general of Illinois and Connecticut decided to investigate JPMorgan Chase's invasion.