Source: Zhitong Finance
The US Commodity Futures Trading Commission requires major Wall Street banks to provide confidentiality agreements for swaps and clearing operations to determine whether these banks are suppressing potential whistleblowers.
According to media reports, the US Commodity Futures Trading Commission (CFTC) has contacted a number of banks, including$JPMorgan (JPM.US)$,$Bank of America (BAC.US)$und$Citigroup (C.US)$to find out if they've been blocking potential whistleblowers from commenting. People familiar with the matter revealed that the CFTC requires banks to sign confidentiality agreements to provide swaps and clearing services, and requires banks to hand over employment and customer agreements for these businesses.
The US Securities and Exchange Commission (SEC) has strengthened regulations in this area and imposed fines on companies that do not comply. The SEC said that in January of this year, J.P. Morgan agreed to pay $18 million in civil fines to settle its accusations of violating whistleblower protection regulations. Damian Williams, the US prosecutor and top executor of criminal misconduct on Wall Street, also encouraged whistleblowers to come forward and report wrongdoing under a new project aimed at uncovering illegal activity. Law enforcement officials at the CFTC's New York office are reviewing whether the contract contains language that blocks reporting or does not clearly state that misconduct can be reported to regulators.