People walk through the JP Morgan & Chase Co. building in New York in a photo taken on October 24, 2013. REUTERS / Eric Thayer / Files GLOBAL BUSINESS WEEK AHEAD OF PACKAGE SEARCH & BUSINESS WEEK 11 APRIL & # 39 ; FÜR FOR ALL PICTURES
WASHINGTON (Reuters) – JPMorgan Chase & Co will pay more than $ 135 million to settle charges that were abused with the so-called "pre-published" American Depositary Receipts (ADRS), the Securities and Exchange Commission said Wednesday ,
The regulator said the investment bank had provided brokers with improper ADRs, ie US securities representing foreign stocks of foreign companies, despite the fact that brokers and their clients lacked the corresponding foreign stocks.
The bank did not approve or reject the findings of the SEC, but agreed to repay profits and additional penalties that were improperly earned.
JP Morgan declined to comment. In August, the bank said it had been investigated by the US Securities and Exchange Commission for investigating ADRs.
According to the regulator, the bank is the eighth institution to be burdened with such a practice by the SEC. The investigation of ADR abuse is still ongoing.
The SEC stated that the improper provision of ADRs that are not backed by underlying foreign securities may result in inappropriate short selling and dividend arbitrage.