JP Morgan Chase & Co. had been poised to pay around USD900 million to US and UK settlement claims. This was after the bank was said to be lax with its internal controls. This further lead led in inaccurate trading loss to the board, regulators and investors last year, said sources familiar with the matter.
The sources also said the bank was set to announce deals today with four regulators over its trade handling by an employee known as the "London Whale". This was because the employee had large bets that were erroneously calculated leading to huge trading losses. The sources spoke in condition of anonymity as the matter was held private in nature. Separately, two people also said the firm might also pay less than USD80 million to settle two watchdogs' probes tied to consumer lending practices.
According to analyst Charles Peabody of Portales Partners LLC, "The package of penalties to be announced today is a message to banks that regulators are going to really ratchet up the fines if the organization is deemed too big to manage in order to get the organization to simplify their structure."
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