May 10 JPMorgan Chase & Co may cut down on its domestic correspondent banking business, as it scans its relationship with several hundred of domestic correspondent banking clients, Wall Street Journal reported, citing people familiar with the matter.
The report cited its sources as saying the bank started the review in January and is examining its relationship with domestic correspondent clients, for which it clears payments and processes other transactions.
JPMorgan has stopped soliciting new business from its few hundred clients and has also stopped accepting new clients until the review is complete, the Journal reported, citing people familiar with the matter.
It said the companies under review include Citigroup Inc unit Banamex USA, according to the report. Banamex is already facing investigation by Mexico's National Bank and Securities Commission for fraudulent loans.
JPMorgan and Citigroup could not be reached for comment outside usual U.S. business hours. (r.reuters.com/wyw29v) (Reporting by Anannya Pramanick in Bangalore; Editing by David Gregorio)