On Wednesday, it was announced by the Securities and Exchange Commission that JP Morgan Chase & Co will be paying $135 million so as to settle that charges which the company had mishandled the so called “pre-released” ADRS which stand for American Depositary Receipts.
As per the regulator, the investment bank has provided the ADRs, which are the securities of the United States which are representative of the foreign shares of the foreign companies to the brokers.
This was despite the fact that the brokers as well their clients have the corresponding foreign shares lacking.
According to the Securities and Exchange Commission, JP Morgan neither admitted nor denied the findings of the Commission and has agreed to pay back the ill gotten gains along with the additional penalties.
According to the Reuters, the bank has declined its request to comment. The bank in the month of the August had made an announcement stating that it was under the investigation of the Commission for its handlings of the ADRs.
Source: Reuters, Finance Yahoo