Bloomberg News

JPMorgan Said Near Regulatory Settlement Over Card Collections

September 12, 2013

JPMorgan Chase & Co. (JPM:US) may settle regulators’ probes into the bank’s credit-card debt collection practices and sales of identity-theft products as early as next week, according to two people with knowledge of the matter.

The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau plan to fine the bank less than $80 million for both matters, said the people, who asked not to be identified because the discussions are private. JPMorgan, the largest U.S. lender by assets, is also near an agreement with U.S. and U.K. regulators who have been investigating its $6.2 billion trading loss last year, one of the people said.

Chief Executive Officer Jamie Dimon met in Washington Sept. 10 with U.S. Comptroller of the Currency Thomas Curry to update the agency on the bank’s activities and its compliance with various regulatory orders, according to two people who asked not to be named because the talks were private.

The bank is facing “a crescendo of activity in past weeks, and we are reacting to that where it makes sense,” Chief Financial Officer Marianne Lake told investors Sept. 9 in announcing that the firm would boost legal reserves by more than $1.5 billion in the quarter to resolve litigation and other potential claims.

Dimon, who also visited lawmakers on Capitol Hill, meets almost monthly with Curry and other regulators, said one of the people. Some of the bank’s board members were also in Washington and put in calls to regulators this week as JPMorgan tries to repair its relations with its supervisors, two people said.

Trading Loss

The OCC is among regulators, also including the Securities and Exchange Commission and the U.K.’s Financial Conduct Authority, preparing to fine the bank after an investigation into its record trading loss in London last year, a person with direct knowledge of the matter said in August. The OCC and Federal Reserve censured JPMorgan without monetary penalties in January for the debacle, which cost the firm more than $6.2 billion.

JPMorgan has added 3,000 employees to bolster internal controls and compliance, Lake said. The company has said it stopped selling identity-theft products in 2011 and refunded all affected customers.

Dimon, 57, also joined Goldman Sachs Group Inc. (GS:US) CEO Lloyd C. Blankfein, 58, at a client event hosted by Carlyle Group LP (CG:US) Sept. 10, according to three people with knowledge of the matter. More than 1,000 guests attended, the person said.

Spokesmen for the OCC, Carlyle, JPMorgan declined to comment. Andrew Williams, a spokesman for New York-based Goldman Sachs, confirmed that Blankfein was at the event.

To contact the reporters on this story: Dawn Kopecki in New York at dkopecki@bloomberg.net; Jesse Hamilton in Washington at jhamilton33@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net


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Companies Mentioned

  • JPM
    (JPMorgan Chase & Co)
    • $58.31 USD
    • 0.86
    • 1.47%
  • GS
    (Goldman Sachs Group Inc/The)
    • $178.98 USD
    • 2.15
    • 1.2%
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