FINRA names former JPMorgan top lawyer to its board of governors

November 10, 2016 4:44 PM EST

A sign for the Financial Industry Regulatory Authority (FINRA) is seen outside the offices in New York's financial district July 22, 2015. REUTERS/Brendan McDermid


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NEW YORK (Reuters) - The Financial Industry Regulatory Authority named Stephen Cutler, vice chairman and former linchpin lawyer for JPMorgan Chase & Co (NYSE: JPM), to its board of governors Thursday.

He replaces Greg Fleming, Morgan Stanley's (NYSE: MS) last head of wealth management, who resigned from the board earlier this year.

FINRA's organizing rules require that the securities industry self-regulator be overseen by a board of 10 industry governors, three of whom must come from large firms.

Cutler, who will step into one of the large-firm seats, has been on the regulatory side before as head of the U.S. Securities and Exchange Commission's enforcement division. However, he has clashed with them, too.

As chief counsel for JPMorgan, Cutler played a key role in the bank's $13 billion settlement with the federal government over charges that JPMorgan overstated the quality of mortgages it sold to investors in the run-up to the financial crisis.

Months later at a conference sponsored by the Clearing House, Cutler said that regulation of the banks was spiraling out of control and what had become "enforcement-worthy has changed."

(Reporting by Elizabeth Dilts; Editing by Leslie Adler)



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