by EuphoricTrilby
There’s a very good chance that the cost of the fine is way less than the fallout of these emails actually getting out. Oh well, it was just an accident.
https://twitter.com/wallstreetsilv/status/1671927820484747264?s=46&t=T37mFTn9E_HUaxN1rB76Hw
https://www.sec.gov/litigation/admin/2023/34-97787.pdf
- These proceedings arise out of the deletion by JPMorgan of approximately 47 million electronic communications in about 8,700 electronic mailboxes relating to the period January 1 through April 23, 2018, many of which were business records required to be retained pursuant Section 17(a) of the Exchange Act and Rule 17a-4(b)(4) thereunder.
- Beginning in 2016, JPMorgan undertook a project to delete from its system older communications and documents no longer required to be retained. The deletion tasks implemented by JPMorgan employees in connection with the project experienced glitches, with the identified documents not, in fact, being expunged. In June 2019, while troubleshooting the issue, firm employees executed deletion tasks on electronic communications from the first quarter of 2018, erroneously believing, based on written representations from JPMorgan’s archiving vendor, that all the documents were coded in a way to prevent permanent deletion of records still within the thirty-six month regulatory retention period required by Section 17(a) of the Exchange Act and Rule 17a-4(b) thereunder. In fact, however, the vendor did not apply the default retention settings in a particular email domain and those communications, including many required to be maintained pursuant to the broker-dealer recordkeeping rules, were permanently deleted. Thus, approximately 47 million electronic communications of JPMorgan employees in the Chase banking retail group, thousands of whom were registered representatives of JPMorgan, are unrecoverable.
- In at least twelve civil securities-related regulatory investigations, eight of which were conducted by the Commission staff, JPMorgan received subpoenas and document requests for communications which could not be retrieved or produced because they had been deleted permanently.