Summary
JPMorgan Chase & Co. (JPM) filed an 8-K on January 14, 2013, reporting the entry into two separate Consent Orders. The first, with the Federal Reserve Board and the OCC, addresses deficiencies in the firm's and its national banks' Bank Secrecy Act/Anti-Money Laundering (BSA/AML) policies, procedures, and controls. The second Consent Order, also with the Federal Reserve Board and the OCC, stems from reviews of the firm's Chief Investment Office (CIO), specifically concerning risk management and control functions related to the synthetic credit portfolio. These orders follow regulatory reviews and investigations into significant losses within that portfolio. While these Consent Orders indicate regulatory scrutiny and require substantial remedial actions, JPM notes that many of the required enhancements are already underway or completed. The company emphasizes its commitment to fully address all identified issues. Investors should monitor JPM's progress in implementing these remedial actions and the ongoing impact of these regulatory matters on the firm's operations and reputation.
Key Highlights
- 1JPMorgan Chase & Co. entered into two Consent Orders on January 14, 2013.
- 2One Consent Order addresses BSA/AML policy, procedure, and control deficiencies.
- 3The second Consent Order relates to risk management and control functions of the Chief Investment Office (CIO).
- 4The CIO-related order specifically pertains to the synthetic credit portfolio and associated losses.
- 5Regulatory bodies involved include the Federal Reserve Board and the Office of the Comptroller of the Currency (OCC).
- 6JPM states that many required enhancements are already in progress or completed.
- 7The firm is committed to fully remediating all issues identified in the Consent Orders.