The executives of JPMorgan Chase & Co. (NYSE:JPM) were recently deposed from the SEC Asset-Management Probe. All these executives were removed not just from the U.S. investigation, but also from the entire bundle of the internal documents treated as a part of the probe into asset management division of the bank.
Analyst identify potential hold signals in JPM.
The SEC Probe
The enforcement division of Securities and Exchange Commission is investigating if the senior executives at asset-management division of the bank developed such a policy which lured clients in the bank’s investment through improper ways. There are various sub-clauses that the SEC is investigating. It is also looking at the biasness of the bank regarding giving importance to its own monetary benefits over the advantage of the clients.
SEC questions paving way for broader national debate
The questions raised by SEC are giving clues of the national discussion regarding the biased financial suggestions given by some of the biggest banks. The U.S. Parliament is meanwhile, supporting the effort of the Labor Department to make fiduciary standard applicable to the brokers handling retirement or pension-related accounts. SEC, the regulatory body overlooking investment advisers, also said that it will check whether these standards can be applied to all the advisers as well or not.
The two-year old JP Morgan probe becoming active now
The investigation of the regulatory body started approximately 2 years ago. It has not activated because it is being supported by Office of the Comptroller of the Currency.
Silvia Trillo deposed: The first one to be removed from probe
The first executive to be deposed was Silvia Trillo. She was deposed because, according to the people involved in investigation, there was no indication of Silvia Trillo’s wrongdoing. Trillo is the executive director involved in developing strategies for various portfolios.
Steering of the clients angle is also being investigation by the SEC.