Posted on January 13, 2013 by Jean
Remember, it has been
suggested here on my blog that until we see some of these actions are
beginning to benefit us, this is all about the in-fighting of the 1%,
who are angry that things are going badly for them. . . ~J
January 11, 2013
JPMorgan Chase (JPM) is likely to face a major regulatory action connected
with firm’s anti-money laundering and compliance programs. The banks
two main regulators, the Office of the Comptroller and the Currency
(OCC) and the Federal Reserve, are expected to announce the action as
early as today, according to Reuters, which would likely be in the form
of a cease and desist order. A cease and desist order is
the harshest form of enforcement action that the OCC can issue. While
the bank is not expected to pay a monetary penalty, the order could
potentially limit the bank’s business activities and strategic
opportunities. Additionally, the bank will be required to enhance its
monitoring and risk surveillance systems and procedures.
JPM CEO Jamie Dimon can’t blame this on a “flawed, complex, poorly
reviewed, poorly executed and poorly monitored” strategy, like he did
when the bank lost $6.2 billion on the so-called “London Whale” trade,
which was disclosed in May of last year. At that time, the lapse was
described as an uncharacteristic black eye for its charismatic CEO.
In many ways, the current potential regulatory action is worse than
any trading loss, because it indicates a systemic lapse in controls.
Regulators, who heightened scrutiny in this area months ago, appear to
have found a company-wide lapse in procedures and oversight connected to
anti-money-laundering (AML) surveillance and risk management. AML
controls are intended to deter and detect the misuse of legitimate
financial channels for the funding of money laundering, terrorist
financing and other criminal acts.
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Thanks to: http://jhaines6.wordpress.com