JPMorgan is falling from favor
NEW YORK — In a 50th-floor conference room overlooking Central Park, JPMorgan’s board members had a pressing question about regulatory problems that have dogged the bank for more than a year: Are we done yet?
In short, according to people briefed on Monday’s meeting, the answer was no.
The board — which at that meeting approved $1 billion in fines to resolve investigations into an embarrassing trading loss in London as well as an inquiry into its credit card products — discussed looming problems.
Also that day, the nation’s commodities trading regulator, which is investigating whether the London losses manipulated the market, warned that it intended to file an enforcement action against the bank after settlement talks broke down.
Even as regulators Thursday announced a settlement over the “London whale” trading loss, the weariness expressed at the board meeting underscored the bank’s stunning fall from favor. JPMorgan emerged from the financial crisis healthier and more profitable than its rivals, and chief executive Jamie Dimon was hailed as a wise and responsible manager.
In just 18 months, however, JPMorgan has swung from Washington’s favorite bank to financial punching bag.
The bank is facing scrutiny from at least seven federal agencies, several state regulators and two foreign nations.
The Consumer Financial Protection Bureau, the people briefed on the matter said, is ramping up an investigation into the bank’s debt collection practices.
Investigations further outside the public spotlight also came into focus at the meeting. The bank’s lawyers, the people said, briefed the board about mounting scrutiny of JPMorgan’s dealings with foreign banks vulnerable to money laundering.