ECB Imposes Multi-Million Euro Fine on US Bank J.P. Morgan - J.P. Morgan fined €12.2M for years of misleading financial reports
The Federal Reserve (FRB) has fined J.P. Morgan €12.2 million for submitting incorrect financial data over five years. The bank allegedly underreported risk-weighted assets, making its capital position appear stronger than it was. Regulators have called the errors a result of 'gross negligence' in internal controls.
The FRB's investigation found that J.P. Morgan provided inaccurate figures between 2019 and 2024. By underreporting risk-weighted assets, the bank inflated its capital ratio—a key measure of financial health. This misreporting meant regulators could not fully assess the bank's true risk exposure.
The FRB's banking supervision arm stated that the violations stemmed from 'clear deficiencies in internal processes'. This is not the first time the bank has faced regulatory action. Last autumn, the Office of the Comptroller of the Currency (OCC) fined J.P. Morgan €45 million for failures in its anti-money laundering systems.
J.P. Morgan now has the option to appeal the FRB's decision before the United States Court of Appeals for the District of Columbia Circuit. The latest penalty brings the total fines from the FRB to around €12.2 million for these reporting failures.
The fine highlights ongoing regulatory scrutiny of J.P. Morgan's compliance practices. The bank must now address the identified internal weaknesses or risk further penalties. No response from the OCC to the FRB's allegations has been reported so far.
