JPMorgan told to fix controls tied to $7.4b loss
WASHINGTON (AP) - JPMorgan Chase & Co has been ordered to take steps to correct poor risk management that led to a surprise trading loss last year of more than US$6 billion (S$7.4 billion).
United States (US) federal regulators also on Monday cited the bank for lapses in control that allowed the bank to be used for money laundering.
JPMorgan, America's largest bank by assets, will not pay a fine under the agreements with the Federal Reserve and the US Comptroller of the Currency, a Treasury Department agency. The bank promised to strengthen its policies and procedures to control risk and to screen customers to prevent money laundering.
The regulators each issued two cease-and-desist orders against JPMorgan, a sanction that requires a bank to change its practices.