JPMorgan Chase is facing more than $850 million in fines from as many as four regulators aiming to punish the big bank for its handling of the $6.2 billion London whale fiasco.
Sources said the Securities and Exchange Commission, the Office of the Comptroller of the Currency, the Federal Reserve and a UK financial regulator could announce a joint settlement as early as Wednesday.
Another group of regulators, including the Commodity Futures Trading Commission, may announce an agreement with the bank in the coming weeks, sources said.
JPMorgan, run by CEO Jamie Dimon, is expected to admit wrongdoing as part of the settlement with the SEC over the trading scandal that blew a hole in the bank’s balance sheet.
While JPMorgan has admitted to management lapses that exacerbated the monstrous bet, regulators are expected to fault the bank for being slow to alert regulators to problems as losses mounted within the bank’s Chief Investment Office
In the wake of the whale, JPMorgan revamped its management ranks, including forcing Ina Drew, the head of the CIO unit, to step down.
Former JPMorgan traders Julien Grout and Javier Martin-Artajo were charged with five counts, including conspiracy, securities fraud and filing false books, in an indictment unsealed Monday in Manhattan federal court. Prosecutors have accused the men of willfully mismarking the bank’s books to hide the losses.