Levin Law Investigates JP Morgan After $250M OCC Penalty

March 1, 2021 Author: Brian Levin
Bank buildings

The OCC Has Announced a Civil Penalty Against the Bank for Engaging in Unsafe or Unsound Practices and More

National securities law firm Levin Law, P.A. (“Levin Law”) is investigating JP Morgan Chase Bank after the Office of the Comptroller of the Currency (“OCC”) announced a $250 million civil penalty. 

Weak Management and Control Framework

According to a consent order issued by the Office of the Comptroller of the Currency (“OCC”), for several years, JPMorgan Chase Bank “maintained a weak management and control framework for its fiduciary activities and had an insufficient audit program for, and inadequate internal controls over, those activities.” 

The OCC also found specifically that the bank had “deficient risk management practices” and an “insufficient framework for avoiding conflicts of interest.” Among other things, the Bank was found to be in violation of 12 C.F.R § 9.9 – Audit of fiduciary activities. Finally, the OCC found that the bank “engaged in unsafe or unsound practices that were a pattern of misconduct.”

One of the Largest and Most Complex Fiduciary Businesses

As noted by the OCC, JP Morgan operates one of the world’s largest fiduciary businesses with assets of over $29 trillion. The Bank put its fiduciary clients at extraordinary risk by failing to implement adequate management and control systems, including a procedure for avoiding conflicts of interest.

Financial institutions that fail to follow state and federal regulations are subject to regulatory action and civil penalties. It is essential that all banks, brokerage firms, and other financial organizations establish adequate supervisory systems as well as sufficient audit programs. Failure to comply with these regulations can result in liability.

Contact Levin Law for a Free Consultation

If you have suffered losses as a result of the result of the intentional misconduct or negligence of your bank, brokerage firm, or investment advisor, contact Levin Law managing partner Brian Levin at (855) 865-4247 or email brian@levinlawpa.com for a free case evaluation. 

Levin Law, P.A. accepts most cases on a contingency-fee basis, meaning that clients are not responsible for Levin Law’s attorney fees unless money is recovered on their behalf.

About Levin Law

Levin Law is a premier national securities and class action law firm. Brian Levin, Levin Law’s founding attorney, has helped recover in excess of $100,000,000 through securities arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.

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