Jpmorgan told to fix oversight after loss

JPMorgan Chase & Co. has been ordered to take steps to correct poor risk management that led to a surprise trading loss last year of more than $6 billion.

Federal regulators also cited JPMorgan for lapses in oversight that allowed the bank to be used for money laundering.

JPMorgan, the nation’s largest bank by assets, will not pay a fine under the agreements with the Federal Reserve and the U.S. Comptroller of the Currency, a Treasury Department agency. The bank promised to strengthen its policies and procedures to control risk and to screen customers to prevent money laundering.

The regulators each issued two cease-and-desist orders against JPMorgan, a sanction that requires a bank to change its practices. They said they had found “deficiencies” in the bank’s procedures to prevent money laundering, and “unsafe or unsound practices” regarding management of risk. The order said the regulators and other government agencies could pursue further action.

The regulators said the bank had committed to take “all necessary and appropriate steps” to correct the problems.

JPMorgan neither admitted nor denied the regulators’ findings in agreeing to the accords.

“We’ve been working hard to fully remediate the issues” related to risk management, JPMorgan spokesman Mark Kornblau said Monday.

He added that the bank had also made preventing money laundering a “top priority.”

JPMorgan disclosed in May that its London office lost billions of dollars in trades designed to hedge against risk. The bank later said some traders had tried to hide the size of the losses.