J.P. Morgan to Receive Nasty Letter from Feds -- Reuters

Banking, finance, and taxes

Published: January 11, 2013 7:23 am

Last Updated: April 28, 2020 12:22 am

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

In an exclusive report from Reuters this morning, “people familiar with the situation” say that the Office of the Comptroller of the Currency (OCC) will end its investigation into certain practices at J.P. Morgan Chase & Co. (NYSE: JPM) by sending the bank a cease-and-desist order. That ought to sting.

Apparently J.P. Morgan’s missteps in monitoring its risks and its transactions were not as serious as those uncovered at HSBC Holdings PLC (NYSE: HBC) that cost the U.K.-based bank nearly $2 billion. HSBC and another British bank, Standard Chartered — which was fined $667 million — were cited for hiding transactions involving Iranian clients, and HSBC admitted to violations of the U.S. Trading with the Enemy Act.

J.P. Morgan is not expected to be fined by the OCC, but the bank still faces an inquiry from the anti-money laundering Financial Crimes Enforcement Network of the Treasury Department.

The OCC action could be announced today, according to Reuters, or it may be pushed into next week.

Cash Back Credit Cards Have Never Been This Good

Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.