Content area
Full Text
Bloomberg -- JPMorgan Chase & Co., seeking to end probes of a trading debacle that damaged its reputation for risk-management, agreed to pay about $920 million for failing to implement adequate controls and providing incomplete information to regulators and its board.
The settlement resolves claims by the U.S. Securities and Exchange Commission, Office of the Comptroller of the Currency, Federal Reserve and the U.K. Financial Conduct Authority, the Fed said today in a consent order against the bank. The Justice Department and Commodity Futures Trading Commission are among agencies still investigating the trading loss in London at the chief investment office, a unit of the New York-based bank that was supposed to help reduce risk and manage excess deposits.
The more than $6.2 billion in losses led to the indictment of two former traders this week, the departure of at least four senior managers and a blow to the reputation of Chief Executive Officer Jamie Dimon, 57, whose pay was cut in half. JPMorgan restated results and its market value fell by almost $51 billion after disclosing errant bets made by Bruno Iksil, a trader who became known as the London Whale because his positions were so large.
JPMorgan “exercised inadequate oversight over the CIO and failed to implement adequate controls to...