Sources told the Wall Street Journal that JPMorgan & Chase intended to beef up its oversight controls. People familiar with the matter said the embattled Wall Street lender planned to allocated USD 4 billion to straighten out its compliance problems. This year, the bank would also add 5,000 employees to help in the effort.
The sources further revealed that of the USD 4 billion, the bank would spend USD 1.5 billion to manage risk and adhere to regulations. The remaining USD 2.5 billion would be added to the lender's litigation reserves in the second half. There would also be a 30% increase in the staff that overseas risk control. Securities filings revealed that JPMorgan & Chase had spent over USD 18 billion in legal fees since 2008.
JPMorgan & Chase Chief Executive Officer James Dimon told the WSJ that fixing their control issues was a priority. "This is a huge investment of people, time and money...but it will make us stronger in the long run," he added.
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