JPMorgan to settle Whale charges with $900m

Beached Whale

JPMorgan is poised to pay about $900m to settle U.S. and U.K. claims that lax internal controls led the bank to provide inaccurate information about last year’s record trading loss to the board, investors and regulators, people with knowledge of the matter said.

Bloomberg reports that the bank is set to announce deals today with four regulators over its handling of the trades by an employee known as the London Whale because his bets were so large, the people said, requesting anonymity because talks were private. Separately, the firm may also pay less than $80m to settle two watchdogs’ probes tied to consumer lending practices, two people said.

CEO Jamie Dimon, whose pay was cut in half last year after the board said he was partially responsible for faulty oversight of the trades, told employees in a 17th September memo the bank is making an “unprecedented effort” to simplify its business, overhaul controls and improve relations with regulators. The firm has been beset by inquiries this year, including the emergence last month of an investigation into its hiring practices in Asia as well as criminal probes tied to mortgage-bond sales and energy trading.

The Office of the Comptroller of the Currency is imposing about $300m in penalties, while the U.S. Securities and Exchange Commission, Federal Reserve and the U.K.’s Financial Conduct Authority each levy about $200m in sanctions, one of the people said.

To access the complete Bloomberg article hit the link below

JPMorgan Said to Pay $900 Million to Settle Whale Probes

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