SEC Investigates JPMorgan Over Mishandling of ADRs

[kreslik.news]

JPMorgan Chase said it’s among depositary banks being investigated by the U.S. Securities and Exchange Commission for misconduct in the trading of American depositary receipts. The agency accuses these lenders with failure to supervise its securities lending desks which caused ADRs to be issued while not backed by actual shares, leaving them ripe for potential market abuse.

The SEC has probed, fined several Wall Street banks including Bank of New York Mellon, Citigroup, Deutsche Bank and J.P. Morgan as it examines whether they have broken controls designed to prevent market abuse and tax fraud.

Specifically, the top securities ... (read more)