Federal regulators want to restrict JPMorgan Chase & Co.’s ability to raise funds for clients, in an effort to impose a broader range of consequences on financial firms accused of breaking the rules, the Wall Street Journal reported today. J.P. Morgan has already agreed to pay more than $200 million to resolve allegations by the Securities and Exchange Commission and other regulators that it didn’t make proper disclosures when touting its own investment products to clients over those offered by its competitors. But the settlement has been held up for several weeks by the SEC’s demands that J.P. Morgan also accept limits on its ability to sell stock or bonds via private placements for several years.
