JP MORGAN TO PAY OVER $135M FOR IMPROPER HANDLING OF ADRs, STOCK IN BREAKDOWN BELOW MAs
In the Premarket trading session on Thursday, JP Morgan’s stock was trading at 94.60- lower by 1.42% as compared to its previous close.
The Securities and Exchange Commission announced on Wednesday that the investment bank will pay over $135 million to settle charges of mishandling pre-released American Depositary Receipts.
The regulator said that JP Morgan Chase improperly provided ADRs, which are U.S. securities that represent stocks of foreign companies, to brokers even though the brokers and their customers lacked the corresponding foreign stocks.
The SEC further said that the investment bank neither admitted nor denied the findings, but agreed to pay back ill-gotten gains and additional penalties.
JP Morgan is the eighth institution to face SEC charges on such a practice, according to the regulator. Its probe into ADR abuse is ongoing, it said.
On the technical front, the current price is below the MA5 (95.06) and MA20 (102.31). The current price is below the middle line of the Bollinger Bands and is heading downwards. The stock is expected to trade lower today.
TRADE SUGGESTION- LIMIT SELL AT 94.95 TAKE PROFIT AT 93.15 STOP LOSS AT 95.95