JPMorgan Chase Pays $ 250 million superb for weak controls in its asset administration division
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JPMorgan Chase agreed Tuesday to pay a $ 250 million fine after a US regulator found a "pattern of wrongdoing" in its asset management department.
The Bureau of Foreign Exchange said in a press release that the New York-based bank's risk management controls were "poor" and the company could not avoid "conflicts of interest" in doing business.
"The bank had a weak management and control framework for its fiduciary activities for several years and had an inadequate audit program and inadequate internal controls for these activities," the OCC said in a consent form.
However, the bank neither admitted nor denied the allegations, and the OCC said JPMorgan had already addressed the shortcomings that sparked the fine. The order made no mention of the banks' actions causing financial damage to their customers.
"We are committed to delivering best-in-class controls across the industry and have made significant investments in and enhancing our control platform over the past few years to address the issues we identified," said a JPMorgan spokesperson.
It was the second time in two months that the bank agreed to pay U.S. regulators a massive deal on how to run its business. In late September, JPMorgan agreed to pay $ 920 million to resolve investigations by three federal agencies into its role in manipulating the global markets for metals and US government bonds.
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