Even after approving $1 billion in fines and an admission of wrongdoing, the board of JPMorgan Chase is confronting more regulatory problems.
According to people briefed on the bank’s board meeting held this week, the Consumer Financial Protection Bureau is bolstering its investigation into JPMorgan’s debt collection. The board also learned new details about the bank’s practice of hiring the children of Chinese officials. And lawyers briefed the board about investigations into JPMorgan’s ties with foreign banks vulnerable to money laundering. “The bank is now facing scrutiny from at least seven federal agencies, several state regulators and two foreign nations,†report Jessica Silver-Greenberg and Ben Protess.
One bright spot for the bank is that the board is now discussing these regulatory problems. In the so-called London Whale trading loss, the Securities and Exchange Commission cited “severe breakdowns†with JPMorgan’s senior management who kept the board and regulators in the dark about the risky bets. If the board wants to prevent future “London Whale†surprises it will have to take on the culture of secrecy that authorities say has spread throughout the bank.
A look back on our reporting of the past week’s highs and lows in finance.
FRIDAY, SEPT. 20
THURSDAY, SEPT. 19
As Inquiries Persist, JPMorgan Loses Favor | Even as regulators announced a settlement over the “London Whale†trading loss, weariness expressed at a board meeting underscored the bank’s stunning fall from favor. DealBook »
Once Again, Punishing the Bank but Not Its Top Executives | Not only did regulators fail to take action against any of JPMorgan’s senior executives, they did not even identify them. DealBook »
Scratching Their Heads, Investors Start Revising Expectations for the Fed | “Now the moral of the story is, ‘Don’t look at what we’re saying,’†said Ken Taubes, the chief investment officer at Pioneer Investments. DealBook »
In Trial Program, Six Foreign Hedge Funds to Gain Foothold in China | Regulators in the city of Shanghai have agreed to let a group of American and British hedge funds raise $50 million each from Chinese institutions to invest around the world. DealBook »
Computer Flaws Get Wry Smile From Humans Displaced | The technology that virtually eliminated the job of stock market specialist has been the source of expensive, disruptive errors, including the “flash crash†of 2010. DealBook »
WEDNESDAY, SEPT. 18
Fed, Delaying End to Stimulus, Surprises Markets Prepared for Retreat | Several on Wall Street pointed an accusing finger at Ben Bernanke, the Fed chairman, and the central bank’s communication strategy. For his part, Mr. Bernanke appeared to put some of the blame on Wall Street. DealBook »
S.E.C. Proposes Greater Disclosure on Pay for C.E.O.’s | The gap in pay between chief executives and rank-and-file employees has been growing steadily, and now regulators want companies to tell investors just how wide it is. DealBook »
Threatening Letters to 140 MF Global Vendors | James W. Giddens, the court-appointed trustee liquidating the bankrupt firm, told vendors they had until Friday to defend payments they had received. DealBook »
TUESDAY, SEPT. 17
S.&.P. Bond Deals Are on the Rise Since It Relaxed Rating Criteria | As banks began reviving the market for bonds tied to home loans, S.& P.’s tough stance was hurting the bottom line. DealBook »
Deadline Approaching, U.S. Is Weighing More Charges in Madoff Case | Among those still under scrutiny for the Ponzi scheme are Shana Madoff Swanson, Mr. Madoff’s niece, and Paul J. Konigsberg, an accountant. DealBook »
Wielding Broader Powers, S.E.C. Examines Hedge Funds in London | The Securities and Exchange Commission is expanding its influence in Britain, but the scrutiny is causing consternation among London money managers. DealBook »
Firms to Pay $14 Million to Settle | Of the 23 firms accused of improprieties around short-selling before I.P.O.s, only one has chosen to fight the charges. DealBook »
Inspired by Professor, Investor Makes Big Gift for Black Studies | Glenn Hutchins is giving more than $15 million to create the Hutchins Center for African and African-American Research at Harvard. DealBook »
Deal Professor: Dole Food’s Buyout in 2013 Looks a Lot Like One in 2003 | In the latest buyout, many of the same people are involved and the regulatory filings have been nearly identical, says Steven M. Davidoff. DealBook »
MONDAY, SEPT. 16
Bank Is Said to Admit Fault in Settlement of Trade Loss | Even so, it seems unlikely that the bank will be able to close the chapter on the case known as the London Whale just yet. DealBook »
Like Father, Like Daughter | A dispute between Ronald O. Perelman and his former in-laws has moved into the next generation as his daughter argues her uncle blocked her inheritance. DealBook »
DealBook Column: Two-Name Race Drops to One, but Guessing Continues | Janet Yellen has emerged as the leading candidate to take over the Fed, but Andrew Ross Sorkin says some are speculating that the president may still choose someone else: Donald L. Kohn. DealBook »
Complying With U.S. Tax Evasion Law Is Vexing Foreign Banks | Concerns have been raised about the cost and effort required to comply with the Foreign Account Tax Compliance Act, among other issues. DealBook »
Britain Puts a Sliver of Its Stake in Lloyds Up for Sale | Britain’s investment arm put 6 percent of Lloyds’s stock, valued at about $5 billion, on the market. The government will still own 33 percent of Lloyds after the sale. DealBook »
SUNDAY, SEPT. 15
Looking to Twitter to Reignite Tech I.P.O.’s | Now investors and deal makers hope that Twitter’s stock sale will help the once-soaring tech sector take flight again. DealBook »
SATURDAY, SEPT. 14
On Wall St., a Throwback Marches On | The investment bank Sandler O’Neill, one of the last major private partnerships on Wall Street, also takes fewer risks than others in the industry. DealBook »
WEEK IN VERSE
