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JPMorgan warns of potential fine over 'historical deficiencies' in internal controls

Published 11/03/2020, 01:06 PM
Updated 11/03/2020, 01:25 PM
© Reuters. FILE PHOTO: JP Morgan Chase & Co. corporate headquarters in New York

(Reuters) - JPMorgan Chase & Co (N:JPM) is facing a potential fine over "historical deficiencies" in internal controls in its role as an adviser to customers within its U.S. bank, it disclosed in a regulatory filing late on Monday.

The largest U.S. bank, which earlier this year agreed to pay more than $920 million and admitted to wrongdoing to settle federal U.S. market manipulation probes, said it was in talks with a U.S. regulator to resolve the latest issue.

Although JPMorgan did not name the regulator, it added that there was no assurance that the current talks would lead to a resolution.

The bank said it already had measures in place to address the problems with its internal controls.

In September, JPMorgan agreed to pay $436.4 million in fines, $311.7 million in restitution and more than $172 million in disgorgement after probes into its trading of metals futures and Treasury securities.

In October, Goldman Sachs (NYSE:GS), another Wall Street powerhouse, agreed to pay an even larger fine of nearly $3 billion over its role in Malaysia's 1MDB corruption scandal, lifting a cloud that has hung over the bank for years.

Latest comments

Yes tens of billions in profits vs a few hundred million in fines, a no brainer when you have no scruples.
And yet the pm market manipulation continues because it is still very profitable to break the rules.
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