JPMorgan Chase will settle with regulators for nearly $1 billion fine for a host of lapses in its oversight and controls, the Federal Reserve announced on Thursday, including the bank's London Whale trading fiasco.
In the midst of a blizzard of regulatory and legal problems, the Fed slapped the megabank with a $200 million penalty for "deficiencies in risk management". In January, the Fed ordered JPMorgan to take action on practices the regulator deemed as "unsafe or unsound".
As a result of its risk management issues, JPMorgan will pay a total of $920 million to various regulators. In addition to the Fed's fine, the U.S.'s largest bank will fork over $300 million to the U.S. Office of the Comptroller of the Currency, $200 million to the U.S. Securities and Exchange Commission and approximately $220 million ($137 million pounds) to the United Kingdom's Financial Conduct Authority.
In a sharply worded decision, the Fed said JPMorgan "exercised inadequate oversight" over its chief investment office, which eventually morphed into the legal and regulatory nightmare now known as the "London Whale". The high-stakes wagers have cost the bank more than $6 billion, and led to the indictment of two former JPMorgan employees.
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