JPMorgan has been found to have violated rules established by many different public commissions.  These violations have forced the big banks to admit to wrongdoing, which doesn’t happen very often.  The fines come in the wake of a trading scandal that resulted in $ 6 billion dollars lost.  The losses were attempted to be covered up by avoiding extra oversight and evidence of “unsafe and unsound” behaviour was noted.  In fact, at an earlier point in this case CEO Jamie Dimon sat in front senators that he could not publicly defend the trades.  At the point of his testimony all of the information still hadn’t been revealed.  Even with all this controversy the Dimon kept both his job as chairman and as CEO.  The malpractice that has been displayed by the traders of JPMorgan has put a wound in their reputation that will also affect the company greatly.

Some say that the fines on JPMorgan were excessive and purely political.  They reason that JPMorgan only hurt itself by these trading losses because they only lost their money and paying a fine for a self-damaging crime doesn’t seem right.  Also that previous crimes such as the Goldman Sachs subprime mortgage rates were actually defrauding the clients of their money still had a much smaller payout.

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links:

http://money.cnn.com/2013/09/19/investing/jpmorgan-london-whale-fine/index.html

http://finance.fortune.cnn.com/2013/09/18/jpmorgan-london-whale-fine/?iid=EL

http://money.cnn.com/2013/03/14/investing/jpmorgan-senate/index.html?iid=EL

http://money.cnn.com/2012/06/13/investing/jpmorgan-jamie-dimon/index.htm?iid=EL