Regulator plans to sanction JPMorgan on "Whale" trade-report

Thu Dec 20, 2012 8:21pm EST

The entrance to JPMorgan Chase's international headquarters on Park Avenue is seen in New York October 2, 2012. REUTERS/Shannon Stapleton

The entrance to JPMorgan Chase's international headquarters on Park Avenue is seen in New York October 2, 2012.

Credit: Reuters/Shannon Stapleton

(Reuters) - A U.S. bank regulator is planning to issue a formal action against JPMorgan Chase & Co (JPM.N), demanding that the bank fix lapses in risk controls that allowed some of its traders to build a risky bet that lost $6.2 billion, the Wall Street Journal reported on Thursday.

The Office of the Comptroller of the Currency, a division of the Treasury Department that oversees banks, is not expected to levy a fine, but it does plan to issue an enforcement action, the Journal reported, citing unnamed people familiar with the matter.

It would be the first regulatory sanction stemming from the high-profile trading debacle at JPMorgan, which happened in its London office. Bruno Iskil, a trader involved with the bet, earned the nickname "London Whale" because of the huge position he and his colleagues had been built using complex derivatives.

Spokespeople for JPMorgan did not immediately return a request for comment.

(Reporting By Lauren Tara LaCapra; Editing by Jeremy Laurence)

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