JPMorgan warns of one other potential regulatory effective tied to weak ‘inner controls’ at financial institution

JPMorgan signage on the door of an office building in New York.

Scott Mlyn | CNBC

JPMorgan Chase said that just weeks after paying a record penalty it is facing another potential fine, this time over internal controls in wealth management and other areas.

The bank disclosed the impending action late Monday in a filing, saying that one of its regulators told the New York-based company that it faced action “related to historical deficiencies in internal controls and internal audit over certain advisory and other activities.”

JPMorgan, the biggest U.S. bank by assets, said that it had already improved its controls tied to the proposed penalty and is in ongoing discussions with the regulator, which it did not name. The firm’s asset and wealth management business is one of its four main divisions and has $2.6 trillion in assets under management.

Trish Wexler, a spokeswoman for the bank, declined to comment.

In late September, JPMorgan agreed to pay $920 million to settle investigations from three federal agencies over its role in the manipulation of global markets for metals and U.S. Treasurys. That was a record fine for spoofing, which is when sophisticated traders flood markets with orders they don’t execute to move prices in their favor.

In that case, the bank entered into a deferred prosecution agreement with the Department of Justice that will expire in three years if the firm satisfies its obligations under the deal.

Comments are closed.