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JPMorgan Chase To Pay $250M Penalty Over ‘Pattern Of Misconduct’ In Wealth Management

By John F. Heerdink, Jr.

Reportedly, JPMorgan Chase & Co (JPM) to pay a $250 million fine after one of its U.S. regulators discovered a “pattern of misconduct” in its asset and wealth management division.

“For several years, the Bank maintained a weak management and control framework for its fiduciary activities and had an insufficient audit program for, and inadequate internal controls over, those activities,” the OCC stated in a consent order.

The Office of the Comptroller of the Currency stated in a release that the bank’s risk management controls were “deficient” and the firm couldn’t avoid “conflicts of interest” in the business. JP Morgan neither admitted nor denied the accusations. The OCC informed that JPMorgan has already fixed the shortcomings that lead to the penalty.

“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,” stated a spokesman for the bank.

The fine payment is the second time in the last two months that the bank has had to pay a huge settlement to U.S. regulators over the conduct of its business. Earlier this year in September, the bank agreed to pay $920 million as a criminal penalty from three federal agencies over its role in the manipulation of global markets over “spoofing” for metals and U.S. Treasurys.

JPMorgan Chase & Co (JPM) is a global financial service leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset management, and commercial banking. To learn more about JPMorgan Chase & Co. (JPM) and to continue to track its progress please visit the Vista Partners JPMorgan Chase & Co. Coverage Page.

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(Read Original Story: JPMorgan Chase pays $250 million penalty over weak controls in its wealth management division in CNBC)


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