UK opens 49 million-dollar ticket to JPMorgan Chase

The reason for the UK's sky-high ticket to JPMorgan is that the company has not segregated its clients by billions of dollars. ⊙ journalist Zhu Zhouliang 0 editor Liu Yufeng because of an oversight that could cause significant losses but did not materialize, JPMorgan's London subsidiary was fined by the UK financial regulator at a record high of 33.32 million pounds ( About 49 million dollars)!　　The UK's Financial Services Authority (FSA) says the next "tough hand" is intended to send an important message to the industry: Ensure that client funds are kept separate from the FSA's rules.　　Improper operation has been going on for 7 years the Financial Times reported that the authorities had fined JPMorgan because it failed to protect billions of dollars of client funds and did not deposit them in an isolated account.　　The Financial Services Authority issued a statement 3rd, said JPMorgan Securities improperly segregated funds on average amounted to 8.6 billion U.S. dollars, the improper operation lasted for 7 years, but has not been found. According to the FSA, financial institutions should be segregated from their own funds when dealing with their clients ' funds and deposit their clients ' funds in separate escrow accounts so that they can be properly protected in the event of bankruptcy.　　But the authorities found that during the period from November 1, 2002 to July 8, 2009, JPMorgan Securities did not isolate the client funds held by its futures Options division from its own funds. It is reported that JPMorgan's futures options department did not follow the rules to draw client funds into a separate money market account, but instead entered the accounts of JPMorgan Chase, which did not take quarantine measures. During that period, the bank's client balance was increased from $1.9 billion in December 2002 to $23 billion in October 2008.　　Assuming that the company is insolvent during this period, client funds will face loss or even a penny left. Many in the legal profession have been surprised by the amount of the fine, which is equivalent to 1% of the average client funds held by JPMorgan's futures and options division during the above period.　　The FSA's fine against JPMorgan was twice times the record fine of 17 million pounds issued to Royal Dutch Shell in 2004, setting a new single record of fines that Shell was penalized for exaggerating oil and gas reserves.　　JPMorgan's shares fell 1.1% per cent in the Thursday New York stock market, to 39.10 dollars. The fallout from Lehman's bankruptcy is still in the FSA, which JPMorgan reported to the FSA in July 2009 and immediately corrected the issue.　　Taking into account the bank's positive attitude, the bank received a certain fine discount, its fine was cut by 30%, the initial fine of up to 47.6 million pounds. Experts say the FSA's "axe" to JPMorgan is partly a risk-control measure triggered by the collapse of Lehman.　　Regulators are said to be considering more similar actions. The authorities alleged that, in a case similar to JPMorgan's securities, customers could lose their share of the business once they were bankrupt,They are unsecured creditors and have no right to recover funds.　　If JPMorgan had been in financial trouble for the past 7 years, clients such as pension funds and hedge funds could face losses. As a result of similar problems, the bankruptcy administrator of Lehman Brothers, the US bankrupt investment bank, is still trying to clean up its books. It is estimated that Lehman's creditors recovered more than $830 billion trillion of claims, and the global authorities are trying to find out how the money flows across its global sector.　　The judges, who deal with Lehman-related lawsuits, have criticised the FSA's oversight of client funding, prompting the FSA to require financial institutions to tighten the segregation of client funds. The FSA's law enforcement chief, Cole, says regulators have repeatedly stressed the importance of ensuring that client funds are properly protected. The penalties for JPMorgan are an important message for all companies that companies must ensure that their clients ' funds are segregated in accordance with FSA rules.　　Companies must face up to the move, Cole said, and there are several more cases being processed by the FSA. The latest penalties are part of a broader investigation into the FSA's financial protections for banks and brokerage clients, sources said. The FSA is concentrating on the wholesale sector, where an institution is more likely to go bankrupt and drag other institutions into the water.