JPMorgan CEO boosted compliance as examiners lost trust

Oliver Twist

JPMorgan Chase CEO Jamie Dimon overhauled leadership of the bank’s regulatory matters this year as U.S. examiners said they had lost trust in management, the Wall Street Journal reported.

Bloomberg News reports that top examiners from the Comptroller of the Currency and the Federal Reserve told Dimon and the New York-based bank’s board of their concern in April, the Journal said, citing unidentified people familiar with the meeting.

Around that time, Dimon assigned senior executives to handle separate elements of the firm’s regulatory burden, resulting in about 50 monthly meetings between those managers and watchdogs, it said.

JPMorgan is boosting legal reserves this year and committing more employees to handle risks, compliance and legal matters as it grapples with federal probes and regulatory orders.

The U.S. is conducting criminal investigations linked to the bank’s energy-trading and mortgage-backed securities businesses as well as separate probes of hiring practices in Asia and a record trading loss in London last year.

JPMorgan has devoted $21.3bn to legal fees and litigation since the start of 2008, more than any other U.S. lender, and added $8.1bn to reserves for mortgage buybacks, company filings show.

JPMorgan has added 3,000 employees to bolster internal controls and compliance, Lake said at the event. An additional 2,000 workers were assigned to the effort inside their business units, the newspaper said.

Hit the link below to access the complete Bloomberg article:

Dimon Boosted Compliance as Examiners Lost Trust, WSJ Says

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