JPMorgan Paid $920m for Financial Fraud

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JPMorgan, the largest investment bank in US by assets, has agreed to pay $920 million in fines to US and British regulators to settle London Whale Probes. Bruno Iksil, a top manager of JPMorgan, withheld information about the extent of growing losses from the board leading to  $6.2bn of derivatives trading losses last year. This can be defined as a financial statement fraud which was resulted from failing in JPMorgan’s internal controls and in senior management. Nevertheless, right after the fraud being exposed, JPMorgan revised its valuation policies and came up with a new protocol for reporting disputes to top executives .

Jamie Dimon,CEO of JPMorgan

Apparently, the reason why Iksil urged his colleagues to deceive committees in board is external pressures such as meeting investors’ expectation or attracting further investment. It’s naive for such a sophisticated manager to suggest that their long-term fraudulent actions would not be caught. However, JPMorgan didn‘t refuse to acknowledge their mistakes as their first movement to put behind the issue for the benefit of the whole corporation. As one of the largest and most profitable bank in US, JPMorgan would be able to absorb its financial losses and rebuild the enterprise image.

 

 

 

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