JPMorgan and Deutsche Bank Named in Money Laundering Report

Bank shares were reeling Monday morning following a report charging that JPMorgan Chase  (JPM) –

Bank shares were reeling Monday morning following a report charging that JPMorgan Chase  (JPM) – Get Report, Deutsche Bank  (DB) – Get Report and other financial services companies had defied money laundering crackdowns even after being fined by U.S. authorities.

The report by the International Consortium of Investigative Journalists found five global banks moved “staggering sums of illicit cash for shadowy characters and criminal networks that have spread chaos and undermined democracy around the world.”

The report cited documents leaked by BuzzFeed News that identified more than $2 trillion in transactions between 1999 and 2017 that were flagged by financial institutions’ internal compliance officers as possible money laundering or other criminal activity, including $514 billion at JPMorgan and $1.3 trillion at Deutsche Bank.

The SPDR Financial Select Sector ETF  (XLF) – Get Report was down 3.8% to $23.60, while JPMorgan Chase was off 4.3%, and Deutsche Bank was down 9.7%. 

The other banks named in the report also were falling, with HSBC Holdings off 6.4%, the Bank of New York Mellon  (BK) – Get Report down 5.6%, and Standard Chartered  was down 5.8%

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