JPMorgan Chase & Co (NYSE:JPM)’s CEO Jamie Dimon vowed to strengthen control efforts to fix compliance and control problems. In his memo to employees Tuesday, the CEO encouraged staff to continue “facing our issues, and rolling up our sleeves to fix” the compliance and control problems.
Strengthening control efforts
As reported earlier, last week the bank reported that it would induct 3,000 employees to the bank’s control staff to work on legal and regulatory matters. Besides this, the bank also indicated its intention to enhance its spending on control efforts by about $1 billion.
Control tops agenda
In his memo sent to employees Tuesday, Jamie Dimon emphasized “Our control agenda is priority No. 1”. The nation’s largest bank by assets has initiated a string of measures to enhance control and regulatory problems.
The bank has provided about 750,000 hours of training on regulatory and control issues. While unveiling its results for the first half of the year, the bank has also disclosed that it spent $1 billion on adding to legal reserves, besides disclosing its intention to spend an additional $1.5 billion during the third quarter.
JPMorgan to focus on critical areas
In his note, the CEO highlighted that the bank is deploying massive new resources and refocusing critical managerial time. Elaborating further, the note dwells deep into its focus on core areas and exiting units like student loan origination and most of the physical commodities sales and trading business.
Besides this, JPMorgan Chase & Co (NYSE:JPM)’s CEO emphasized the bank was conducting an in-depth review of its foreign correspondent banking business.
Yesterday, JPMorgan Chase & Co (NYSE:JPM) indicated settlements between regulators and the bank could be announced this week in the London Whale case. The bank is said to have agreed to pay at least $750 million in fines.
JPMorgan Chase & Co (NYSE:JPM) has been facing probes from the U.S. Department of Justice, the Securities and Exchange Commission and other government agencies that are looking into subjects including energy trading, possible bribery in hiring practices in China and possibly fraudulent sales of mortgage securities.
Mr. Dimon highlighted in his memo that bank’s efforts represent an unprecedented initiative for JPMorgan Chase & Co (NYSE:JPM) and one that ensures the bank will get this right.