The clashes are said to have led to the departure of a series of managers in the past year.
Clashes over strategy within JPMorgan Chase's compliance operations have led to the departure of a series of managers in the past year, according to three of those who have left.
Reuters reports that faced with intense scrutiny after regulators found failings in its anti-money laundering (AML) program, and rising costs as it seeks to identify suspicious transactions, the biggest U.S. bank has invested in new automated systems and installed executives skilled in making bank operations more efficient.
The moves are being watched closely by the rest of Wall Street and could be adopted more widely if JPMorgan is successful in keeping compliance costs under control. A senior executive in an AML role at a rival bank said that provided there isn't a backlash from regulators over the new approach, it will be taken up elsewhere: 'We'd all copy it.'
But it has created friction with some current and former JPMorgan managers who have more of a traditional law enforcement background and are used to doing their own in-depth probes of transactions. They claim the bank is emphasizing quantity over quality in its investigations.
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