JPMorgan warns of one other potential nice linked to weak “inner controls” at banks
JPMorgan signage on the door of an office building in New York.
Scott Mlyn | CNBC
JPMorgan Chase said that just weeks after paying a record fine, it faces another potential fine, this time over internal controls in asset management and other areas.
The bank announced the impending action on file late Monday, saying one of its regulators had notified the New York-based company that it was facing actions that “related to historical flaws in internal controls and auditing related to certain advisory and other activities “.
JPMorgan, the largest U.S. bank by assets, said it had already improved its controls on the proposed penalty and is in ongoing discussions with the regulator, who failed to identify it. The company’s wealth and asset management business is one of four main divisions and manages $ 2.6 trillion in assets.
Trish Wexler, a spokeswoman for the bank, declined to comment.
In late September, JPMorgan agreed to pay $ 920 million to resolve investigations by three federal agencies into its role in manipulating the global markets for metals and US government bonds. That was a record spoofing penalty when discerning traders flood the markets with orders they fail to execute in order to move prices in their favor.
In this case, the bank entered into a deferred law enforcement arrangement with the Justice Department that will expire in three years if the company honors its obligations under the business.