FERC mulls enforcement action against JPMorgan Chase
Series of regulatory problems.
JPMorgan Chase, in its quarterly filing, has said that the Federal Energy Regulatory Commission (FERC) is considering an enforcement action against the bank and conduct of certain personnel.
In his meeting with officials of the Office of Comptroller of the Currency and Federal Reserve, JPMorgan Chase chairman and CEO Jamie Dimon pledged to remedy lapses in controls and compliance and ordered his staff to co-operate with the regulators.
“If you get the Heisman from someone, call me directly,” Dimon is said to have told the officials, reported the Financial Times.
JPMorgan Chase, in an e-mail statement, said: “We strongly disagree with the staff’s conclusions. The staff is challenging a bidding strategy that was transparent and was in full compliance with the applicable rules. We strongly dispute that Blythe Masters or any employee lied or acted inappropriately in this matter.”
Staff of the energy watchdog has alleged violations of FERC rules and the rules of certain independent system operators, according to the filing.
JPMorgan estimates that the potential losses from legal disputes could mount to as much as $6bn, which is beyond reserves already set aside.
The bank’s employees already lost $6bn on credit derivatives as part of the “London whale” trading incident.