2010年6月8日火曜日

JPモルガン証券 制裁金46億円

JPモルガン証券は、FSAより制裁金46億円を受けた。
 英国FSAは、JPモルガン・チェースの子会社であるJPモルガン証券に対し、
3332万ポンド(約45億円)の制裁金を科したと発表した。

問題点
・F&O部門が、顧客からの預かり資産と自己勘定の資金との分別管理が
 できていない。
・JPモルガンとチェースが合併した7年前から、昨年7月まで

幸いにも、JPモルガン証券が破綻しなかったために、顧客の資金は、損失
しなかったが、破綻していたら、すべて無くなった可能性が高いらしい。
合併したときに、両者があいまいに管理したとのことだが、日本の場合、
オンライン設備は変更せず、ハードウェアとソフトウェアによるインター
フェースを経由してやり取りするため、もともと担当していた会社関係者
の責任になることが多いらしい。

英国では、金融機関が自己申告しなければ、FSAが財務状況を確認できない
ことを立証した。どこの国の金融機関も同様のことをやっていて、たまたま
JPモルガン証券がバカ正直に報告しただけの話か。


---英当局、米証券に45億円制裁金---
2010年6月3日20時20分 読売新聞
http://www.yomiuri.co.jp/atmoney/news/20100603-OYT1T00932.htm

 【ロンドン=是枝智】英国の金融庁にあたる金融サービス機構(FSA)は3日、米金融大手JPモルガン・チェースの子会社であるJPモルガン証券に対し、3332万ポンド(約45億円)の制裁金を科したと発表した。
 FSAによると、顧客からの預かり資産と、自己勘定の資金との適切な分別管理ができていなかったのが理由で、制裁金としては過去最高額となった。
 FSAは声明で、「JPモルガン証券は7年近くにわたって、数十億ドルにのぼる顧客資産を適切に管理せず、重大な違反を行った」と指摘した。FSAは金融機関の違反摘発の強化に乗り出している。


---FSA Loses Latest Insider-Trade Case---
JUNE 4, 2010
By PATRICIA KOWSMANN And DAVID ENRICH
http://online.wsj.com/article/SB10001424052748704025304575284033106574578.html?mod=WSJ_hpp_MIDDLETopStories

Acquittals Hurt the U.K. Regulator's Push for a Tougher Image; Separately, J.P. Morgan Fined

LONDON-A jury here acquitted two men charged with insider trading, dealing a blow to the U.K. Financial Services Authority as it strives to showcase a new tough-on-crime persona.

The FSA had charged Peter Andrew King and Michael McFall with insider trading in advance of a June 2006 pharmaceuticals deal, but the London jury on Thursday delivered a not-guilty verdict in less than two hours.

The acquittals overshadowed the FSA's announcement earlier in the day that it had slapped a J.P. Morgan Chase & Co. unit with a L33.32 million ($48.7 million) penalty, the regulator's largest-ever fine, for failing to separate client money from the firm's accounts. The FSA said it expected to bring similar cases against other banks in coming weeks.

After years of rarely filing criminal charges, the agency once derided for being a toothless regulator of The City of London has revved up its law-enforcement efforts with a recent flurry of arrests, police raids, criminal charges and other headline-grabbing actions. But the FSA has successfully prosecuted only a handful of criminal cases, mostly against small-time offenders, and it is under pressure to show that it can win a major case.

The swift loss of its most recent insider-trading case stunned FSA officials, who believed that the complex case would take the jury days to decide.

The FSA's enforcement chief, Margaret Cole, said in a statement Thursday afternoon that insider-trading cases are notoriously tough to prove and that "we remain 100% committed to the strategy of achieving credible deterrence."

The acquittal comes at an inopportune time for the FSA. Doubts are swirling about the agency's future as the U.K.'s new coalition government eyes an overhaul of the country's regulatory apparatus.

In the J.P. Morgan case, the FSA said that over a nearly seven-year period the U.S. bank's JPMorgan Securities Ltd. unit, based in the U.K., failed to properly segregate billions of dollars in institutional clients' money from the company's own funds.

"Had the firm become insolvent at any time during this period, this client money would have been at risk of loss," the agency said, calling the mistake "a serious breach of our client money rules."

The agency said J.P. Morgan reported the problem when it was discovered and that the error wasn't deliberate. Clients didn't lose any money and the mistake didn't result in any incorrect financial reporting, the FSA said.

A J.P. Morgan spokesman declined to comment.

"This is a staggering fine for what is in effect an administrative oversight. If this doesn't serve to wake up every senior manager to check that he or she has carefully identified all risks and is properly managing them, then nothing will," said Simon Morris, a partner at London law firm CMS Cameron McKenna.

The FSA said the penalty was appropriate because as much as $23 billion in client funds were improperly intermingled with J.P. Morgan's own funds.

The fine would have been L47.6 million if J.P. Morgan hadn't agreed to resolve the case at an early stage, which made it eligible for the FSA's standard 30% discount for speedy settlements.

The FSA's previous largest fine was L17 million against Royal Dutch Shell PLC in 2004 for market abuse.


---JP Morgan hit with largest fine in FSA's history---
By Harry Wilson, Financial Services Correspondent
Published: 10:18PM BST 03 Jun 2010
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7801702/JP-Morgan-hit-with-largest-fine-in-FSAs-history.html

The Financial Service Authority on Thursday sent out a major warning to City investment banks to tighten up the way they look after their clients' money as JP Morgan received the largest fine the regulator has ever handed down, for putting as much as L16bn of customers' funds in to the wrong bank account.

JP Morgan was fined L33.3m by the FSA for what it described as "serious breach" of rules governing the segregation of the bank's money and that of its clients.

Though no money was lost, the misallocation of the funds would have meant JP Morgan's clients would have lost their money if the bank had collapsed.

Margaret Cole, director of enforcement and financial crime at the FSA, warned that the fine would not be last for the offence and said firms needed to "sit up and take notice of this action", warning that the regulator had "several more cases in the pipeline".

Mathew Rutter, financial services partner at law firm Beachcroft, said: "Not only can we expect similar fines in future, but I would expect, and hope, that the FSA and other regulators will be far more proactive in ensuring the client money rules are being applied correctly."

The fine is the largest meted out by the FSA, but could have been even larger - L47.6m - but JP Morgan reported the matter to the FSA and agreed to settle at an early stage.

Its size was calculated on the basis of 1pc of the average amount of client money improperly held in the wrong accounts by the bank.

The amount of client money at risk varied between L1.3bn and L15.7bn and consisted of funds held with JP Morgan's futures and option business by large institutional investment management companies and hedge funds. These clients did not know that there money was potentially at risk until yesterday's announcement.

Ironically, some of the fund managers are likely to have transferred their money to JP Morgan in the wake of Lehman Brothers collapse, as investment managers looked to put their cash into banks regarded as being safe.

The failings at JP Morgan took place over a seven year period between 2002 and 2009 and were only discovered last July. No further action is expected against the bank or any of its employees.

A spokesman for JP Morgan would not say whether any individuals at the bank had been punished as a result of the error.

Daniel Pinto, chief executive of JP Morgan, wrote in an internal memo to staff that no clients of the bank had lost any money as a result of the error.

"While the error is regretful, I am proud of the manner in which the firm has conducted itself since discovering it," wrote Mr Pinto.

Simon Morris of law firm CMS Cameron McKenna said the fine was "staggering" for what he described as an "administrative oversight".

He said: "If this doesn't serve to wake up every senior manager to check that he or she has carefully identified all risks and is properly managing them, then nothing will. The one surprise is that FSA hasn't also gone against the senior managers responsible for this mistake, which is now its normal practice."


---FSA fines JPMorgan record L33.32 million---
Kirstin Ridley
LONDON
Thu Jun 3, 2010 6:34pm BST
http://uk.reuters.com/article/idUKTRE6521IU20100603

(Reuters) - U.S. investment bank JPMorgan Chase & Co has been fined a record 33.32 million pounds in Britain for failing to protect billions of dollars of client money over almost seven years.

Issuing a stark warning to other banks operating in Britain, the Financial Services Authority said on Thursday that JPMorgan Securities Ltd, a UK unit of the bank, had failed to adequately protect between $1.9 billion (1.3 billion pounds) and $23 billion of client money between November 2002 and July 2009.

"This penalty sends out a strong message to firms of all sizes that they must ensure client money is segregated in accordance with FSA rules. Firms need to sit up and take notice of this action -- we have several more cases in the pipeline," said Margaret Cole, the FSA's head of enforcement.

Under FSA rules, companies have to ringfence client money from the firm's money and keep it in segregated accounts with trust status to protect it in the event of an insolvency.

However, JPMorgan failed to segregate client money held by its futures and options business (F&O) with JPMorgan Chase Bank N.A. (JPMCB) following the merger of JPMorgan & Co and Chase Manhattan Corporation in 2000. The error remained undetected for nearly seven years.

Lawyers voiced surprise at the size of the penalty, which one said should serve as a "wake up call" to senior managers.

"This is a staggering fine for what is in effect an administrative oversight," said Simon Morris of law firm CMS Cameron McKenna. "The one surprise is that FSA hasn't also gone against the senior managers responsible for this mistake, which is now its normal practice."

JPMorgan has performed due diligence checks in its futures business globally since uncovering the error in Britain, a person familiar with the bank said. The internal checks indicate the mistake was a one-off issue resulting from the Chase merger, the person said.

The second-largest U.S. bank by assets, JPMorgan was profitable during the financial crisis and won market share in part by acquiring troubled Bear Stearns Cos in March 2008 and failed Seattle thrift Washington Mutual Inc, just days after Lehman Brothers filed for bankruptcy in September 2008.

JPMorgan declined comment.

ERROR 'NOT DELIBERATE'

No clients suffered any losses from the breach. But the FSA has been keen to prove its mettle after battling accusations of failing to spot and halt the excessively risky banker behaviour that helped trigger the worst credit crisis since World War Two.

In handing down the record fine, its largest since penalising oil company Royal Dutch Shell 17 million pounds in 2004 for overstating oil and gas reserves, the FSA said it took into account that the misconduct was not deliberate.

It also noted JPMorgan reported the error to the regulator after spotting it last July during conversations between senior staff in its compliance and treasury departments, that it immediately rectified the problem and cooperated with the FSA.

JPMorgan's cooperation with the FSA earned it a 30 percent discount on its original 47.6 million pound fine, in line with FSA practice.

After the financial crisis brought banks around the world to their knees and crawling to the taxpayer for bail-outs, the FSA has stepped up targeted supervision and regulatory intervention.

It created a specialist CASS (Client Asset Sourcebook) task force last year to measure and mitigate risks to client money and assets -- and has warned compliance departments of financial institutions to expect spot checks.

Over the last six months, the FSA said it had identified failings that included poor management oversight and control, a lack of trust status for segregated accounts, unclear arrangements for segregating client money and incomplete or inaccurate records.

The regulator has demanded costly and lengthy investigations by third parties -- so-called skilled person reports, made two enforcement referrals, issued private warnings and even frozen assets and issued a ban on taking on new business.


---British Regulator Fines JPMorgan $49 Million---
By JULIA WERDIGIER
Published: June 3, 2010
http://www.nytimes.com/2010/06/04/business/global/04fine.html

LONDON - JPMorgan Chase was fined a record L33.3 million by Britain’s financial regulator Thursday for failing to keep client funds separate from the firm’s money.

The Financial Services Authority said JPMorgan did not “adequately protect” billions of dollars in client money held by its futures and options business. The error, which occurred after the merger of JPMorgan and Chase and remained undetected for nearly seven years, put the client funds at risk had the firm become insolvent, the regulator said.

JPMorgan itself reported the issue to the regulator once it discovered the error last July, but some analysts said the episode left both the regulator and JPMorgan in a bad light because the problem remained undetected for such a long time.

“Even if it’s an oversight, the fact that it’s such a large amount and it went on for seven years makes me scared stiff,” said Tamar Frankel, a professor at Boston University’s School of Law.

JPMorgan failed to separate client funds worth $1.9 billion to $23 billion from 2002 to 2009, according to the F.S.A. The regulator said the fine, the equivalent of $48.6 million, was meant to “send out a strong message to firms of all sizes that they must ensure client money is segregated” and added that it had “several more cases in the pipeline.”

The bank qualified for a 30 percent reduction of the fine because it “worked constructively” with the F.S.A. during the investigation and agreed to settle at an early stage, the agency said. No clients suffered any losses, it added.

“J.P. Morgan Securities committed a serious breach of our client rules by failing to segregate billions of dollars of its clients’ money for nearly seven years,” the agency’s director of enforcement, Margaret Cole, said in a statement. “The penalty reflects the amount of client money involved in this breach.”

In an internal memo obtained by The New York Times and sent to employees Thursday, Daniel E. Pinto, chief executive of J.P. Morgan Securities, wrote that the error “was not deliberate” but it “did breach the F.S.A.’s client money rules which we regret.”

He added that he was “proud of the manner in which the firm has conducted itself since discovering it; a fact also acknowledged by the F.S.A. We realize that many of your clients will likely have questions related to this settlement,” the memo said. A JPMorgan spokesman, David Wells, declined to comment.

The F.S.A. has stepped up its enforcement activities during the past year, handing out more and bigger fines to financial institutions and individuals. It is now looking to improve its record in protecting clients of financial services firms and the stability of the banking system.

Britain’s coalition government, in power since May, plans to move some of the regulator’s enforcement powers to a newly created agency that would focus on white-collar crime. The step would not abolish the F.S.A., which the Conservative party had previously pledged to do, but it splits an increasingly important part of the regulator into a separate organization.

The error came to light on July 8 during conversations between senior staff about contributions to Treasury financing by the futures and options business, known as F.&O., the F.S.A. wrote in a summary of its findings dated May 25.

“F.&O.’s view was that most of F.&O. money would be client money, whereas Treasury explained that it did not know that F.&O. money was client money,” according to the report. “The error remained undetected because F.&O. operations had not implemented any overarching control processes to confirm that all client money was held in a properly segregated bank account with trust status,” it said.

0 コメント: