A subsidiary of JPMorgan Chase is facing a potential civil penalty “related to historical deficiencies in internal controls and internal audit over certain advisory and other activities.”
JPMorgan Chase Bank N.A. was alerted to the potential fine by one of its U.S. regulators, which is unnamed in the Monday quarterly filing with the Securities and Exchange Commission. JPMorgan said the bank “already has controls in place to address the deficiencies related to the proposed penalty.”
JPMorgan said it is currently engaged in resolution discussions with the regulator, but “[t]here is no assurance that such discussions will result in resolution.”
In September, JPMorgan agreed to pay more than $920 million as part of an agreement with three federal agencies—the Commodity Futures Trading Commission, the SEC, and the Department of Justice—to settle allegations that the firm’s traders manipulated the precious metals markets with false trades, an illegal practice called “spoofing.”
Jaclyn Jaeger is an editor with Compliance Week and has written on a wide variety of topics, including ethics and compliance, risk management, legal, enforcement, technology, and more.
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