The firm also faces a series of enforcement actions
The New York Times reports that two federal regulators are preparing a series of enforcement actions and fines against JPMorgan stemming from its dealings with consumers during the recession in the latest legal woes facing the nation’s biggest bank.
The regulators, the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau, plan to announce the actions as soon as next month, according to people briefed on the matter. Under the terms of the civil orders, the bank will have to acknowledge internal flaws and dole out at least $80m in fines, said the people, who spoke anonymously because they were not authorized to speak publicly about the matter.
The most costly cases for JPMorgan centre on concerns that the bank duped its credit card customers into buying products pitched as a way to shield them from identity theft. In separate actions reflecting their varied jurisdictions, the consumer bureau will levy a roughly $20m fine, while the comptroller’s office is expected to extract about $60m.
In another set of actions, the regulators are aiming at the bank for the way it collected overdue bills from consumers, the people said. It is unclear whether those cases will yield any fines.
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