JPMorgan told to fix controls tied to $6B loss
Posted: 4:14 pm Mon, January 14, 2013
WASHINGTON — JPMorgan Chase & Co. has been ordered to take steps to correct poor risk management that led to a surprise trading loss last year of more than $6 billion.
Federal regulators are also citing the nation’s largest bank for lapses in control that allowed the bank to be used for money laundering.
JPMorgan will not pay a fine under the agreements with the Federal Reserve and the U.S. Comptroller of the Currency, a Treasury Department agency. JPMorgan promised to strengthen its policies and procedures to control risk and to screen customers to prevent money laundering.
JPMorgan in May disclosed that its London office lost billions in trades designed to hedge against risk. The bank later said that some traders had tried to hide the size of the losses.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.