Washington, DC – Oregon’s Senator Jeff Merkley issued the following statement after the SEC declined to bring charges against either the employees at JPMorgan, or the company itself, for misleading investors about the “London Whale” bet.
“Although JPMorgan, in its settlement, admitted to failures of internal controls, and is paying a substantial fine, that is only half the story. Ensuring truthfulness in disclosure is the heart and soul of the SEC’s mission to prevent securities fraud. In this case, the SEC has failed to hold the company accountable for what appear to be deeply misleading statements made to investors.
“Fixing internal control failures is important, but there must also be serious consequences for misleading investors and the public. This no-accountability approach to financial regulation led to the reckless risk-taking that caused the financial crisis and Great Recession. We have new rules on the books, like the Volcker firewall, to reduce risky behavior. But if regulators refuse to impose accountability and transparency, we will keep repeating the failures of the past.”