The Commodities Futures Trading Commission (CFTC) has reached out to several banks, including JPMorgan Chase, Bank of America, and Citigroup, to inquire about whether they have been impeding potential whistleblowers from coming forward. The CFTC is requesting non-disclosure agreements from the banks for their swaps and clearing operations. It has also requested employment and customer agreements from those companies.
The CFTC and BofA declined to comment, while JPMorgan and Citigroup did not immediately reply to Reuters requests for comment. The US Securities and Exchange Commission (SEC), which has been ramping up its oversight in this area and has levied fines against noncompliant firms, is applauding the top financial regulator’s move.
In January, JPMorgan agreed to pay an $18 million civil penalty to settle charges that it violated whistleblower protection rules, the US SEC said. A top enforcer of criminal malfeasance on Wall Street, Damian Williams, has also encouraged whistleblowers to come forward and report wrongdoing under a new program aimed at uncovering illegal activity.
