A 2013 enforcement action against bank holding company JPMorgan Chase & Co., New York, following the disclosure of “significant losses” in a large synthetic credit portfolio managed by its Chief Investment Office (CIO) has been terminated by the Federal Reserve Board, the central bank announced Thursday.
The January 2013 consent order identified deficiencies in the firm’s internal controls, particularly at the CIO, and required the firm to improve its risk-management program and internal audit functions, the Fed said. These deficiencies had spurred similar action by the Office of the Comptroller of the Currency (OCC).
JPMorgan Chase was assessed some $920 million in civil money penalties later that same year by regulators here and in the United Kingdom related to the above-noted deficiencies. That figure included penalties assessed individually by the Fed, the OCC, the Securities and Exchange Commission (SEC), and the U.K. Financial Conduct Authority.
The Fed on Thursday said it terminated the January 2013 consent order “based on evidence of substantial improvements by the firm.”