JPMorgan will pay a $250 million fine over inadequate risk management controls in its wealth management business, a regulator announced Tuesday, fresh on the heels of a nearly $1 billion fine related to alleged manipulation of precious metal and Treasury markets.
KEY FACTS
The Office of the Comptroller of the Currency (OCC) said it assessed the most recent civil penalty because of JPMorgan’s “failure to maintain adequate internal controls and internal audit” over its wealth management arm.
The OCC added that it had found a “pattern of misconduct” over several years that led to the investment bank’s inability to prevent conflicts of interest.
JPMorgan neither admitted nor denied wrongdoing, according to the consent order, and the OCC said the bank has already corrected the issues it described.
JPMorgan said its asset and wealth management generated record revenue of $3.7 billion in the third quarter, boosting profit by 31% from the same quarter last year to $877 million.
CRUCIAL QUOTE
“We are committed to delivering best-in-class controls across our business, and we have invested significantly in and enhanced our controls platform over the last several years to address the issues identified,” a bank spokesperson said in a statement reported by Reuters.
KEY BACKGROUND
This is the second major settlement for JPMorgan in as many months. In September, the bank agreed to pay $920 million as a criminal penalty and admitted wrongdoing for an illegal practice known as “spoofing,” where traders flood the market with orders they don’t intend to execute in order to drum up the appearance of strong demand for an asset. A joint investigation by the Justice Department, Securities and Exchange Commission and the Commodity Futures Trading Commission found that a few JPMorgan traders had engaged in the practice in the precious metals and Treasury futures markets over multiple years.
This article originally appeared on Forbes.
