JPMorgan Chase Bank fined $2.4m for oversight lapses in bond transactions

The bank had already paid the civil penalty.

JPMorgan Chase Bank, N.A. has been penalised $2.4m for failing to monitor misconduct by its relationship managers.

The Monetary Authority of Singapore (MAS) said the managers inaccurately disclosed information in 24 over-the-counter bond transactions, leading to spreads exceeding the agreed terms for clients.

MAS investigations revealed that JPMorgan’s relationship managers (RMs) charged clients spreads above agreed rates in 24 OTC bond transactions.

As interbank prices were unavailable to clients, they relied on RMs’ representations.

JPM admitted to inadequate controls, paid a civil penalty, refunded overcharges, and improved internal frameworks.