Response To $6 Billion Bank Losses Expected Soon
January 14, 2013 by UPI - United Press International, Inc.
NEW YORK (UPI) — U.S. regulators are set to announce responses to lapses in JPMorgan Chase’s risk and money-laundering controls, sources told The Wall Street Journal.
The country’s largest bank lost more than $6 billion in risky trades generated by a London office in 2012, which resulted in the departure of eight of the bank’s inner circle of decisionmakers, a group that is normally comprised of about 12 close advisers to Chief Executive Officer James Dimon.
The Office of the Comptroller of the Currency, which is poised to announce a response to the trading losses is also close to making an announcement about the bank’s failures in money-laundering controls, said sources close to the discussions between the bank and regulators.
The bank has yet to make public its own internal report concerning the trading losses. The report is about 50 pages long and is critical of the bank’s senior level executives, the Journal reported Monday.
The board has also written its own report on the losses, which exonerates independent board members, as they were not presented with any information on the losses until it was too late to react.
The bank’s board is scheduled to meet Tuesday. On the agenda is bonus pay for CEO Dimon and for former former Chief Financial Officer Douglas Braunstein, which could be reduced for their role in the losses.
The OCC’s announcement could come early this week, the sources said.