For all the problems that the “London Whale” incident cost J.P. Morgan Chase & Co. (NYSE: JPM) and the markets in general, the sanctions handed down by the Federal Reserve and Office of the Comptroller of the Currency were very modest.

The actions could, however, affect the bonus of CEO Jamie Dimon. His stature has already been wounded.

The Fed release:

The Federal Reserve Board on Monday issued two consent Cease and Desist Orders against JPMorgan Chase & Co., New York, New York (JPMC), a registered bank holding company. The first order requires JPMC to take corrective action to continue ongoing enhancements to its risk-management program and its finance and internal audit functions, particularly in regard to JPMC’s Chief Investment Office (CIO). The Board’s order follows the disclosure of significant losses in a large synthetic credit portfolio that was managed by the CIO. The second order requires JPMC to take corrective action to enhance its program for compliance with the Bank Secrecy Act and other anti-money laundering requirements at JPMC’s various subsidiaries.

The most damning statement for Dimon is this one:

Within 60 days of this Order, the board of directors shall submit to the Reserve

Bank an acceptable written plan to continue ongoing enhancements to the board’s oversight of

JPMC’s risk management, internal audit, and finance functions.

Risk management has, to some extent, been taken out of his hands.

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