JPMorgan Chase Pays $ 250 million superb for weak controls in its asset administration division
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JPMorgan Chase agreed Tuesday to pay a $ 250 million fine after a US regulator found a "pattern of wrongdoing" in its wealth and asset management division.
The Bureau of Foreign Exchange said in a press release that the New York-based bank's risk management controls were "poor" and the company could not avoid "conflicts of interest" in doing business.
"The bank had a weak management and control framework for its fiduciary activities for several years and had an inadequate audit program and inadequate internal controls for these activities," the OCC said in a consent form.
However, the bank neither admitted nor denied the allegations, and the OCC said JPMorgan had already addressed the shortcomings that sparked the fine. The order made no mention of the banks' actions causing financial damage to their customers.
"We are committed to providing best-in-class controls across the industry and have invested significantly in and improved our control platform over the past few years to address the issues we identified," said a spokesman for the bank.
It was the second time in two months that the bank agreed to pay U.S. regulators a massive deal on how to run its business. In late September, JPMorgan agreed to pay $ 920 million to resolve investigations by three federal agencies into its role in manipulating the global markets for metals and US government bonds.
JPMorgan hinted that a fine may be imposed earlier this month, but neither the bank nor the regulator provided detailed information about the potential wrongdoing and conflicts of interest that sparked the fine. In late 2015, JPMorgan agreed to pay fines of more than $ 300 million after the Securities and Exchange Commission found the bank failed to disclose it had some customers in higher-fee products developed by the company stuck.