US regulators to fault JP Morgan over Madoff accounts
The Office of the Comptroller of the Currency is expected to issue a cease-and-desist order against bank.
US regulators plan to fault JPMorgan, which served as Bernie Madoff’s main bank for two decades, for failing to conduct adequate due diligence and report suspicious activity, according to sources.
The Office of the Comptroller of the Currency is expected to issue a cease-and-desist order against JPMorgan, which will require the largest US bank to put an end to the alleged failures in its anti-money laundering practices.
The timing of the order is uncertain but could come later this year, the source said. A fine is not expected. If the OCC is not satisfied with JPMorgan’s response, it can take harsher action against the bank, including financial penalties.
The following is from 2 weeks ago…showing the regulators have had enough and JP Morgan being targeted in more then one way now.
The number of federal agencies now investigating JPMorgan Chase & Co. (NYSE:JPM), the biggest U.S. bank by assets, has grown to eight, and one case involves suspicions the biggest U.S. bank by assets did not fully alert authorities to concerns about Bernard L. Madoff, now in prison for an $18 billion Ponzi scheme, the New York Times said Wednesday.
While some of the New York-based bank’s troubles have been disclosed, there are indications that JPMorgan may not have been as forthcoming with authorities about suspicious trades related to Madoff, as the law required.
Among agencies probing the big bank are the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission and the Federal Bureau of Investigation. The investigations have taken up an increasing amount of time for CEO Jamie Dimon.
Stock price severely lagging peers in banking industry last 2 weeks after outperforming for years. JP Morgan is going to see their CEO/Chairmen Jamie Dimon ousted from one of his positions.
Will Jamie Dimon Lose His Job?
A group of investors in J.P. Morgan Chase & Co. (NYSE: JPM) have filed a shareholder proposal calling for the bank’s board of directors to name an independent chairman, splitting the two roles now held by Chairman and CEO Jamie Dimon. The proposal will get a vote at the bank’s May shareholder meeting.
The proposal was put forward by the American Federation of State, County and Municipal Employees (AFSCME), the Connecticut Retirement Plans and Trust Funds, Hermes Fund Managers and the New York City Pension Funds, among others. In a press release issued this morning, the AFSCME said:
Major Investors Call on JPMorgan Chase to Name Independent Board Chair
Coalition with $820 million in JPM shares seeks stronger, more independent governance and oversight
New York, N.Y. —
A coalition of investors including the AFSCME Employees Pension Plan, the Connecticut Retirement Plans and Trust Funds, Hermes Equity Ownership Services and the NYC Pension Funds, has filed a shareowner proposal calling on JPMorgan Chase (NYSE: JPM) to name an independent board chairman. JP Morgan Chase shareowners will vote on the proposal at the company’s 2013 annual meeting in May.
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