No penalties for JP Morgan over $6 billion risk management failure and AML shortfalls

JP Morgan

The US Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board ordered JP Morgan to tighten up risk management and anti-money laundering (AML) controls in two consent orders published yesterday. But no penalties were imposed on the bank or on individuals for the failures that saw the bank lose $6 billion in ill-judged credit derivative trades in the period leading up to 2012. JP Morgan's chief investment office (CIO) made a series of risky credit derivatives trades that