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CFTC Joins SEC in Probing Wall Street Banks Over Non-Disclosure Agreements

Posted on June 19th, 2024 at 10:18 AM
CFTC Joins SEC in Probing Wall Street Banks Over Non-Disclosure Agreements

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

The Commodity Futures Trading Commission (CFTC) is investigating major Wall Street banks to determine if their non-disclosure agreements (NDAs) are preventing potential whistleblowers from reporting violations. As reported by Bloomberg News, this inquiry involves prominent institutions such as JPMorgan Chase & Co., Bank of America Corp., and Citigroup Inc.

The CFTC has requested that the banks provide employment and customer agreements from their swaps and clearing businesses. This scrutiny by the CFTC mirrors actions taken by the Securities and Exchange Commission (SEC), which has increased its enforcement and imposed higher fines on companies that do not comply. In January, JPMorgan agreed to pay $18 million to resolve SEC charges that the bank had prevented advisory and brokerage customers from voluntarily contacting the regulator about securities violations. The settlement was reached without JPMorgan admitting or denying the findings.

A review by Bloomberg News last year revealed that at least a dozen companies had omitted exceptions for reporting to the SEC in their confidentiality agreements over two years, highlighting concerns about the widespread nature of this practice.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

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