JP Morgan pours staff and cash into crackdown to end scandals

 
Tim Wallace
Follow Tim
JP MORGAN’S boss Jamie Dimon yesterday vowed to end the run of crises hitting the bank by simplifying the business and dedicating unprecedented resources to ensuring that rules are followed.

It comes as the bank faces the prospect of paying hundreds of millions of dollars to settle with regulators over the London Whale scandal, on top of fines for mortgage-backed securities mis-selling.

The chief executive and chairman wrote to staff to detail steps taken so far. These include $1bn (£628m) spent this year on enhancing controls, including $750m and 5,000 staff working on consent orders, and hundreds more on the Fed’s stress testing plans, as well as a new anti-money laundering system.

“Never before have we focused so much time, effort, brainpower, technological power and money on a single, enterprise-wide objective,” he wrote. “Make no mistake—we are going to get this right.”