More Bad News for JPMorgan
Regulators point finger at weaknesses in its anti-money-laundering procedures
By Mark Russell, Newser Staff
Posted Nov 16, 2012 9:57 AM CST
In this Thursday, May 10, 2012, file photo, automobiles pass a JP Morgan Chase building in New York. The banking giant is facing formal action from US regulators.   (AP Photo/Frank Franklin II)

(Newser) – More bad news for JPMorgan Chase: The banking giant is expected to be hit with formal action by US regulators over perceived weaknesses in its anti-money-laundering system, as part of a wider crackdown on the financial industry, reports the Wall Street Journal. It doesn't look like there will be fines levied in this case, but sources say JPMorgan will likely receive a cease-and-desist order from the Office of the Comptroller of the Currency, which is expected to require the bank to strengthen its procedures and do a review of past transactions. Banks currently must alert the feds when it notices suspicious activity or cash transactions in excess of $10,000.

The moves against JPMorgan come a week after regulators addressed the directors and executives of more than a dozen financial institutions using what the Journal describes as an "unusually blunt tone." A senior bank exec relays his colleague's impression of the meeting: "It was a spanking." OCC's director said that regulations were being more firmly enforced than before the financial crisis. "Passable is not acceptable," he said. "It's important for the public to know that regulators are doing their job."

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Showing 3 of 6 comments
Nov 18, 2012 10:41 PM CST
Regardless of the past, the SEC and OCC do have the power to over their own ass and with the present public opinion about them I think they will tighten up the ship. The public has to stay on them.
Nov 16, 2012 10:21 AM CST
"It doesn't look like there will be fines levied in this case...a senior bank exec relays his colleague's impression of the meeting: It was a spanking." The SEC and the OCC are a fucking joke. If anyone else was caught doing something like this, their ass would have been RICO'd.
Nov 16, 2012 10:11 AM CST
You can launder money at Chase with no problem at all, but transfer your own money from savings to checking and they put a three day hold on your funds.