JPMorgan Chase Admits to Wrongdoing, Settles in $920M Deal with Regulators

JPMorgan Chase Admits to Wrongdoing in $920M Deal with RegulatorsThe nation’s largest bank Thursday made what amounted to a rare admission of mistakes and wrongdoing that have resulted in the imposition of a $920 million fine by U.S. and U.K. regulators.
More than a year after traders at JPMorgan Chase caused a massive, multibillion-dollar loss, the deal announced Thursday resolves investigations from four regulators: the Securities and Exchange Commission (SEC), the Office of the Comptroller of the Currency, the Federal Reserve and the Financial Conduct Authority in London.
The U.S. Securities and Exchange Commission said in its own statement that the deal from its end settles charges against JPMorgan Chase of “misstating financial results and lacking effective internal controls.”
The lack of those controls failed to “detect and prevent (JPMorgan Chase) traders from fraudulently overvaluing investments to conceal hundreds of millions of dollars in trading losses,” the SEC said.
Despite the bank’s senior management being assailed by regulators from several fronts, not a single executive was charged in the cases. Still, the SEC unleashed strong words at Jamie Dimon, the bank’s chief executive, and other senior officials.
“While grappling with how to fix its internal control breakdowns, JPMorgan’s senior management broke a cardinal rule of corporate governance and deprived its board of critical information,” George S. Canellos, co-director of the S.E.C.’s enforcement division, said in a statement.
Dimon, the bank’s Chairman and Chief Executive Officer, released this statement:
“We have accepted responsibility and acknowledged our mistakes from the start, and we have learned from them and worked to fix them. We will continue to strive towards being considered the best bank – across all measures – not only by our shareholders and customers, but also by our regulators. Since these losses occurred, we have made numerous changes that have made us a stronger, smarter, better Company.”

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