More than a year after a group of traders at JPMorgan Chase caused a multibillion-dollar loss, government authorities on Thursday imposed a $920 million fine on the bank and shifted scrutiny to its senior management.
Extracting the fines and a rare admission of wrongdoing from JPMorgan, the nation’s largest bank, regulators in Washington and London took aim at a pervasive breakdown in controls and leadership at the bank. The deal resolves investigations from four regulators: the Securities and Exchange Commission, the Office of the Comptroller of the Currency, the Federal Reserve and the Financial Conduct Authority in London.
The regulators cited “deficiencies” in “oversight of the risks,” assessment of controls and development of “internal financial reporting.” The regulatory orders attributed significant blame on senior management, who failed to elevate concerns about the losses to the bank’s board.
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