Dec 20 A U.S. bank regulator is planning to
issue a formal action against JPMorgan Chase & Co,
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
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.