Sometimes, after all this time, I forget that I actually worked for JP Morgan.
From the fall of 1997 to almost the end of 1999, I was the Director of the JP Morgan Y2k project management office in Latin America. My team made sure all the bank’s systems in Mexico City, Buenos Aires, and São Paulo were ready for the Year 2000. I joined JP Morgan as an employee, a Vice President in the Latin America Corporate Technology team, in April of 1998. I had started the project as a consultant for the bank with KPMG Consulting.
Maybe I should have stayed longer… But we had finished our preparations for the millennium change and we were only waiting for the ball to drop on December 31st. I had been away a long time and needed to go home. I returned to the US in November of 1999 and rejoined what was now BearingPoint and then returned to Latin America for that firm. Everything at JP Morgan in Latin America turned over to the new year smoothly but my team drank champagne all over South America without me.
I wrote an update last Friday for Medium.com of my November blog post, “My Big Fat Overrated CEO: McKenna On Dimon On The Keiser Report.” In that Keiser Report I had asked, “Why does Jamie Dimon still have a job?” The bank was facing a long list of legal and regulatory challenges even then.
Last Friday’s Medium post, “Jamie Dimon Safe at Home, For Now”, explains that lots more has happened since.
Almost a year later, The Wall Street Journal says on August 18 that Barclays – another PwC audit client repeatedly in legal trouble – says JP Morgan, audited by PwC, is on a tear to have more legal woes than any other bank, even the other big US bank PwC audit client, Bank of America.
Regulatory headaches keep piling up for J.P. Morgan Chase & Co.
A growing number of lawsuits and investigations could force the nation’s largest bank to absorb $6.8 billion in future legal losses above its existing reserves, according to a filing earlier this month. That amount is greater than any other U.S. bank, according to an analysis from Barclays Research, a unit of Barclays PLC.
The numbers put J.P. Morgan on pace to supplant Bank of America Corp. as the big lender with the most legal problems. Since early 2010 only Charlotte, N.C.-based Bank of America has paid out more in legal costs and settlements, according to Barclays’ analysis.
My blog post at Medium.com updates everyone with the latest on the JP Morgan “Whale” traders who were indicted last week and assorted other energy trading and mortgage related investigations, the stuff of what The Wall Street Journal reported. But The Wall Street Journal had an even newer one, newer than even last Friday. According to a recent filing by the bank, “J.P. Morgan faces six separate investigations from the U.S. Justice Department, according to the filing, three of which hadn’t previously been disclosed.”
The bank also said in the same filing that it is responding to questions from an antibribery unit of the Securities and Exchange Commission about its hiring practices in Hong Kong. The agency asked the bank to provide information about J.P. Morgan’s “business relationships with certain clients,” according to the filing. The New York Times NYT +0.79% reported Saturday that the SEC was specifically looking into the bank’s hiring of Chinese officials’ children and how those hires may have helped the U.S. bank win business.
The New York Times was first to report the Chinese bribery investigation on August 17 in DealBook and then put the story on its front page on Sunday.
Read this article in its entirety at the re: The Auditors, a blog by Francine McKenna.
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