J.P. Morgan (JPM) Pressured as U.S., U.K. Reguators May Bring Formal Action
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J.P. Morgan (NYSE: JPM) is seeing a little pressure Monday amid reports that the hammer might come down on the firm over the "London whale" trades and massive losses disclosed earlier this year.
The bank might be hit with sanctions in both the U.S. and U.K. over risk-management practices as well as issues with internal money-laundering controls. The Office of the Comptroller of the Currency (OCC) will as the bank to fix issues which allowed a London-based team to incur over $6 billion in trading losses. The OCC will also see to it that J.P. Morgan beefs-up it anti-money laundering procedures.
The U.K.'s Financial Services Authority (FSA) has also been investigating the bank and may open an official investigation tied to whether traders mismarked certain positions.
A cease-and-desist order might be issued as soon as today, Bloomberg noted.
J.P. Morgan's Board might also release an internal report which faults CEO Jamie Dimon's oversight of the division with its January 16th quarterly report. The Board will meet Tuesday and are largely expected to reduce the bonus Dimon and former CFO Doug Braunstein receive.
Shares of J.P. Morgan are down 0.6 percent.
The bank might be hit with sanctions in both the U.S. and U.K. over risk-management practices as well as issues with internal money-laundering controls. The Office of the Comptroller of the Currency (OCC) will as the bank to fix issues which allowed a London-based team to incur over $6 billion in trading losses. The OCC will also see to it that J.P. Morgan beefs-up it anti-money laundering procedures.
The U.K.'s Financial Services Authority (FSA) has also been investigating the bank and may open an official investigation tied to whether traders mismarked certain positions.
A cease-and-desist order might be issued as soon as today, Bloomberg noted.
J.P. Morgan's Board might also release an internal report which faults CEO Jamie Dimon's oversight of the division with its January 16th quarterly report. The Board will meet Tuesday and are largely expected to reduce the bonus Dimon and former CFO Doug Braunstein receive.
Shares of J.P. Morgan are down 0.6 percent.
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