Regulators to fine JPMorgan $80 million over consumer dealings: NYT

Wed Aug 28, 2013 2:14am EDT

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) - U.S. federal regulators are preparing to impose a fine of $80 million on JPMorgan Chase & Co (JPM.N) relating to its dealings with retail customers during the recession, the New York Times reported, citing people familiar with the matter.

Under the terms of the civil orders, the bank will have to acknowledge internal flaws, said the paper. (link.reuters.com/jes62v)

The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau are expected to announce the actions as soon as next month, the paper said.

The regulators are investigating reports that the bank sold an identity-theft protection with false promises to credit card customers through a third-party vendor, the paper reported.

In another set of actions, the regulators are targeting the bank for flooding state courts with lawsuits that used faulty documentation to substantiate the amount owed by consumers, the people told the paper.

JPMorgan was not immediately available for comment outside of normal business hours.

Reuters earlier reported the bank already faces the prospect of paying $6 billion to the U.S. government to settle lawsuits over bonds backed by subprime mortgages.

(Reporting by Krithika Krishnamurthy in Bangalore; Editing by Mark Potter)

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Comments (2)
sylvan wrote:
So when do we stop pretending JP Morgan has any legitimate business and just call it a racketeering house of ill repute: Demon’s Whale Tail.

Aug 28, 2013 6:05am EDT  --  Report as abuse
sylvan wrote:
So when do we stop pretending JP Morgan has any legitimate business and just call it a racketeering house of ill repute: Demon’s Whale Tail.

Aug 28, 2013 6:05am EDT  --  Report as abuse
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