JPMorgan Chase Pays $250 Million Fine Over Alleged Misconduct in its Wealth Management Division
JPMorgan Chase is in hot water once again, this time being accused of deficient risk management controls, with the consequences being a fine of $250 million by one of its US regulators.
According to a consent order released by the Office of the Comptroller of the Currency (OCC), the bank has allegedly maintained a weak management and control framework in its asset and wealth management division, which ultimately prevented the firm from avoiding conflict of interest in its business dealings. Although JPMorgan has neither denied or confirmed the allegations, the OCC noted that the bank has already fixed the issues that prompted the penalty. It is also unknown whether or not the bank’s misconducts lead to financial harm to its clients.
This is the second time in two months that JPMorgan has been fined by US regulators regarding its internal business handlings. Back in September, JPMorgan agreed to pay a settlement of $920 million after investigations by three federal agencies accused the bank of manipulating global markets for metals and US Treasuries. Then back in 2015, the bank had agreed to pay $300 million in fines after the Securities and Exchange Commission concluded that the firm refrained from disclosing that it allocated some its clients into higher-fee products that were created by the bank itself.
Information for this briefing was found via the OCC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
