CFTC Scrutinizes Non-Disclosure Agreements at US Banks
The Commodity Futures Trading Commission (CFTC) has reportedly initiated an investigation into the non-disclosure agreements (NDAs) used by leading US banks, such as JPMorgan, Bank of America, and Citi. This investigation aims to determine whether these agreements potentially silence whistleblowers and impede the reporting of wrongdoing to the regulator.
Citing sources familiar with the matter, Bloomberg News reported on Tuesday that the CFTC has requested information from these banks regarding their employment and customer agreements within their swaps and clearing businesses. The specific focus of the probe is whether the language in these NDAs includes provisions that deter whistleblowers or fail to clarify that employees can report misconduct directly to the regulator.
This CFTC inquiry aligns with broader government efforts to address concerns that companies may be using NDAs to suppress the reporting of violations. At this stage, however, the banks under investigation have not been accused of any wrongdoing, and the CFTC’s investigation may conclude without further action.
The banks involved, including JPMorgan and Citigroup, have not yet responded to requests for comment, while Bank of America declined to comment on the matter. The CFTC itself has also not immediately responded to a request for comment from Seeking Alpha.
This investigation underscores the importance of whistleblower protections and the need for clear guidelines regarding the reporting of misconduct within financial institutions.
