FOR IMMEDIATE RELEASE
June 19, 2012
Contact: Bryan Hubbard
Comptroller Discusses Response to Losses Reported by JPMorgan Chase
WASHINGTON — Comptroller of the Currency Thomas J. Curry discussed his perspective on losses reported by JPMorgan Chase during today’s testimony before the House Financial Services Committee.
During his testimony, the Comptroller described the agency's two-pronged response. "The first component focuses on evaluating the adequacy of current risk controls at the bank," the Comptroller said. "We are actively assessing the quality of management and risk management; board oversight; the types and reasonableness of risk measurement metrics and limits; the model governance review process; and the quality of work by the independent risk management team and internal auditors."
"The second component," Comptroller Curry said, "evaluates the lessons learned from this episode that could enhance risk management processes at this and other banks. Consistent with our supervisory policy of heightened expectations for large banks, we are demanding that the bank adhere to the highest risk management standards."
The Comptroller's written testimony also described the agency's approach to large bank supervision and its efforts to raise supervisory expectations of these institutions. This effort involves raising expectations for governance and oversight, capital, reserves, and liquidity, which the Comptroller said "leads toward strong, effective supervision and toward improved soundness of our banking system so that it can fairly serve its customers and communities."
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