Support Marketplace

JPMorgan agrees to pay $920 million in fines over bad bets

President and CEO of JPMorgan Chase Co. Jamie Dimon drinks water as he testifies before a Senate Banking Committee hearing on Capitol Hill June 13, 2012 in Washington, D.C.

Regulators are saying Thursday morning that JPMorgan Chase has agreed to pay $920 million in fines in the ongoing case of bad financial bets made by the infamous trader dubbed the 'London Whale.'

The SEC said JPMorgan Chase broke the cardinal rule of corporate governance regarding the bad bets. Marketplace's David Weinberg says what's most surprising is that JPMorgan Chase admitted wrongdoing. 

"That rarely happens in cases like these because it makes it easier for investors to file lawsuits against the bank and that's exactly what they're doing right now to JPMorgan."

In a memo this week, Morgan's CEO Jamie Dimon said the bank has been aggressively bringing in new personnel to beef up auditing and compliance safeguards.  

Marketplace's David Weinberg joins Morning Report host David Brancaccio to discuss. Click the audio player above for more. 

About the author

David Weinberg is a general assignment reporter at Marketplace.

Comments

I agree to American Public Media's Terms and Conditions.
With Generous Support From...