September 19, 2013
Comptroller Statement Regarding Civil Money Penalty Against JPMorgan Chase, N.A.
WASHINGTON—Comptroller of the Currency Thomas J. Curry today issued the following statement regarding the civil money penalty issued by the Office of the Comptroller of the Currency against JPMorgan Chase, N.A., for unsafe and unsound practices related to derivatives trading activities conducted on behalf of the bank by the Chief Investment Office (CIO):
Today's actions by the OCC, the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission, and the Financial Conduct Authority in the United Kingdom represent extraordinary work and international cooperation to help ensure our financial system operates in a safe and sound manner and in accordance with applicable laws domestically and abroad.
Banks are in the business of managing risk, and bank management must implement the appropriate governance, controls, risk management and audit functions to ensure the bank operates in a safe and sound manner. Bank management must also ensure open and effective communication with supervisors, so that we can effectively do our jobs. Anything less is unacceptable and will not be tolerated.
The nearly $1 billion in combined penalties and the more than $6 billion in losses resulting from the failures in controls over derivatives trading serve as important reminders to all bankers of the importance of prudent controls, strong governance, and effective risk management. The OCC will continue to use the remedial measures at its disposal, including civil money penalties and cease and desist orders, to deter unsafe and unsound practices.