JPMorgan to pay $1.16 billion in penalties over 'London Whale' case

Commuters are reflected in stone as they walk past the JPMorgan headquarters in New York on May 17, 2012. JPMorgan Chase & Co, the biggest United States bank, will pay approximately US$920 million (S$1.16 billion) in penalties to regulators
Commuters are reflected in stone as they walk past the JPMorgan headquarters in New York on May 17, 2012. JPMorgan Chase & Co, the biggest United States bank, will pay approximately US$920 million (S$1.16 billion) in penalties to regulators in two countries to settle some of its potential liabilities from its US$6.2 billion London Whale derivatives loss last year, according to terms made public on Thursday, Sept 19, 2013. -- FILE PHOTO: REUTERS

(Reuters) - JPMorgan Chase & Co, the biggest United States bank, will pay approximately US$920 million (S$1.16 billion) in penalties to regulators in two countries to settle some of its potential liabilities from its US$6.2 billion London Whale derivatives loss last year, according to terms made public on Thursday.

The penalties include US$300 million to the US Office of the Comptroller of the Currency, US$200 million to Federal Reserve, US$200 million to the US Securities and Exchange Commission and 137.6 million pounds (S$277.8 million) to Britain's Financial Conduct Authority.

The regulators' citations focus on failures in risk management and financial reporting systems. JPMorgan was also cited for failing to tell its board of directors and regulators about deficiencies in its risk management systems that had been identified by management.