Skip to content

JP Morgan Chase & Co. Insider Trading Scandal To New Levels

Insider trading scandal: From “The cartel” of 2013, to the apps of 2021

Hello everyone welcome thank you very much for watching this video and tuning in to ipo market watch if you’re new please consider subscribing as i’m looking right now live the markets a good christmas gift let’s say late but that’s okay better than never i think that the markets are doing well today i don’t know all my stocks are all green they’re all going up

Like crazy and that’s just let me know in the comment section below how the market’s doing is treating you today so in this video we’re going to talk about some things that are just utterly disgusting and it just gets annoying because it happens from time to time it’s been happening for years now and again jp morgan and chase company jp morgan chasing company um

Involved in insider trading scandal it is so annoying this people just can’t get enough of money they want more and more and more and that’s how basically i guess i don’t know maybe that’s how they get so rich uh it gets me really mad because you see how they will uh point fingers and say the retail investor doesn’t know how to invest this and this yeah we don’t

Know how to cheat let’s just say that you can say that you we don’t know how to cheat inside a trading scandal from the cartel 2013 to the apps of 2021 yes the cartel which they so cleverly called it you’ll see what i mean and the apps that they use oh my it’s just horrible all right some of the major side effects right of banking what are the major side effects

Of banking financial investments trading stock market services what’s one of the big headaches insider trading insider information it’s against the law it that whole non-confidentiality the whole leaking corporate or other news spreading false information right we that happens on probably on a daily basis when it comes to stocks and breaching confidentiality

Agreements those are all headaches big headaches when it comes to uh like we said banking financial investment stock market trading and all that capital market capital market regulators do their best or try their best to punish these things catch them all right catch them in the act and punish them these are abuses of law and they are need to be stopped well a

Recent example is the imposition of fines right recently of jp morgan and chase uh by the u.s securities and exchange the sec the sec research covered the period from 2015 to 2021 from 2015 to 2021 jp morgan chase executives boy were they little they were very clever very clever kind of the sec research covered like we said from 2005 to 2020 and they focused on

The non-keeping of communication records between employees and executives of the company what do we mean by non-keeping of communication was it why was the sec involved was focused on that part well by law communications of stock brokers right communications various whatever that is it could be an email it could be a phone call whatever zoom uh video interviews

All right so all forms of communication of stock brokers investment firms and banks have to be recorded to assure quality and protection of both parties or third parties they have to be recorded and those recordings have to be accessible at any time by the way by the us authorities by the sec jp morgan and chase has his external regular regulatory system that

Works right where they have to record everything by as lost state so why should this communications be recorded well it’s the only way to ensure accuracy of communication right so through the recording the stock orders right the stock orders of stock clients the investment tips of consultants as well as minutes of the teleconferences they’re all kept archived

And recorded how many times have we not heard cases where a client will say we’ll take the courts a investment firm claiming that the order that was placed for stocks or whatever was not that of my interest as a client i did not i did not give this sort of order they executed something else they used my money and so on right so that has happened many times the

Sec sec’s findings in this case with jp morgan chase and company are particularly interesting because the executives went out of the way to do something extra just so they can get away from the recording the recordings that have to be like we said done by law as it turned out the company’s executives jp morgan chasing company right the executives were using

Communication methods that were impossible to detect through the company’s internal control and regulatory compliance system the jpmorgan chase executives use the whatsapp application for their telephone communications which is uh like with it’s it’s it’s beyond the regulatory compliance system for exchange of messages while at the same time they use their

Personal accounts and email addresses for corporate matters of the bank thus they what they what the executives of jpmorgan chasing companies set up was a parallel corporate operation it was a parallel corporate operation it was the one where everything goes through the regulatory compliant recordings and then the other operation that went through uh stealth

Mode let’s say nobody will know what we’re really doing behind the scenes and again this reminds me of this book which you should all read where it says in this book that wall street will oftentimes tell you something and behind your back will say the opposite so the sec and the commodity futures trading commission find jpmorgan chase 125 million dollars and 75

Million respectively for avoiding to use the official corporate communication channels which are recorded and archived so the phenomenon is not isolated executives of other banks such as morgan stanley and deutsche bank have been fined or fired when they were found to be communicating with each other through encrypted communication platforms such as whatsapp

Or telegram the use of alternative right so using alternative non-corporate means of communication is not allowed right especially if it’s between banking and stock market executives which has been around actually for a long time unfortunately which is what we call insider trading back in 2013 there was the big forex scandal which was revealed what happened then

It turned out that the foreign exchange traders of big banks communicating with each other through a private chat room called the cartel so they can make secret negotiations and agree on exchange rates look at that well at the same time average george trying to play the forex and trying to play in a fair way with his little mind of how he’s going to play the

The currencies right play invest right i should say they were setting up through secret chat rooms and agreeing the exchange rates five of the world’s largest banks were then fined five billion dollars but i’m pretty sure nothing really changed thank you very much for watching this video don’t forget to like and subscribe to ipo market watch where we talk about

Initial public offerings plus extra content like this one thank you very much i wish you all good holidays merry christmas if uh some of you won’t see my videos or uh you know check out my channel before christmas i hope to see you again take care you

Transcribed from video
JP Morgan Chase & Co. Insider Trading Scandal To New Levels By IPO Market Watch