JPMorgan Chase & Co. (NYSE:JPM) Pays $1.7B Penalty
JPMorgan Chase & Co. (NYSE:JPM), the Dow Jones Industrial Index and S&P 500 index tracked financial powerhouse has been going through a purple patch in the past quarter at the stock market. A further vote of confidence in the stock was received on January 6, when rating agency Barclays recommended a overweight rating on this $219 billion market capped firm and increased its price target from previous $65 to $67.
Markets Take News In Their Stride
These positive sentiments being expressed by the analyst community and the investors validation of the same in the form of 14 percent increase in the market valuation of the stock in the past 90 days seem to have factored in the various fines and regulatory penalties that JPMorgan Chase & Co. (NYSE:JPM) has been shelling out in the recent past to once and for all, wipe the slate clean with respect to questionable business practices condoned by the firm in the run up to the 2007/ 08 financial crisis.
$1.7 Billion To Wipe Slate Clean
The latest instance of such a payout happened earlier this week when JPMorgan Chase & Co. (NYSE:JPM) settled a criminal charge of financial misconduct by handing out to the Justice Department a cheque for $1.7 billion in exchange of a deferred prosecution agreement.
This settlement came about in response to the Justice Department charge against the bank for failing to maintaining appropriate anti-money laundering checks and controls and having materially failed to file mandatory “suspicious activity report” with respect to the transactions conducted by its client Bernard L. Madoff in the infamous ponzy scheme.
Commenting about the settlement, JPMorgan Chase & Co. (NYSE:JPM) official spokesperson Joseph M. Evangelisti has been quoted as saying, “Madoff’s scheme was an unprecedented and widespread fraud that deceived thousands, including us, and caused many people to suffer substantial losses.