JPMorgan deletes 47 million records, cripples SEC investigations
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JPMorgan Chase Bank accidentally deleted 47 million electronic records containing messages related to ongoing investigations by the Securities and Exchange Commission (SEC), latest news on June 22 shows.
JPMorgan deleted millions of records, paying a $4 million fine
The bank was found to have mistakenly deleted millions of electronic records, including emails and instant messages; an error that has hindered the agency’s ongoing investigations.
As a result, the bank has agreed to pay a $4 million fine.
These records, which involved emails and instant messages, were meant to be protected by a third-party vendor responsible for archiving the bank records. However, it was later discovered that the emails sent to the “Chase” communications domain were not protected as advertised, resulting in their complete erasure.
This loss of critical information affected not just the SEC, but numerous employees, including as many as 7,500 individuals who needed the information for regular communication with the bank’s customers.
Deleting these crucial communications involved bank records gathered between January and April 2018, and it occurred when the establishment responsible attempted to address system glitches and failures. Following their move, the SEC claims it has hindered eight cases they are investigating and four other regulatory probes.
JPMorgan declined to comment on the matter and did not admit or deny the allegations made by the regulator.
Although the impact is still unknown, the legal ramifications are known. Financial establishments and brokerage firms are legally obligated to
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