Banking, finance, and taxes
Fed Slaps J.P. Morgan on the Wrist for London Whale
Published:
Last Updated:
For all the problems that the “London Whale” incident cost J.P. Morgan Chase & Co. (NYSE: JPM) and the markets in general, the sanctions handed down by the Federal Reserve and Office of the Comptroller of the Currency were very modest.
The actions could, however, affect the bonus of CEO Jamie Dimon. His stature has already been wounded.
The Fed release:
The Federal Reserve Board on Monday issued two consent Cease and Desist Orders against JPMorgan Chase & Co., New York, New York (JPMC), a registered bank holding company. The first order requires JPMC to take corrective action to continue ongoing enhancements to its risk-management program and its finance and internal audit functions, particularly in regard to JPMC’s Chief Investment Office (CIO). The Board’s order follows the disclosure of significant losses in a large synthetic credit portfolio that was managed by the CIO. The second order requires JPMC to take corrective action to enhance its program for compliance with the Bank Secrecy Act and other anti-money laundering requirements at JPMC’s various subsidiaries.
The most damning statement for Dimon is this one:
Within 60 days of this Order, the board of directors shall submit to the Reserve
Bank an acceptable written plan to continue ongoing enhancements to the board’s oversight of
JPMC’s risk management, internal audit, and finance functions.
Risk management has, to some extent, been taken out of his hands.
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.