Boston, MA 10/16/2013 (wallstreetpr) – JPMorgan Chase & Co. (NYSE:JPM) is not new to controversies. It has recently reported in the last quarter a hole of more than $900 million in its profit books due to legal debacles. The company has also just agreed to pay $100 million to Commodity Futures Trading Commission in relation to the infamous “London Whale” deal.
The largest bank in the U.S. has had several and frequent run-ins with the U.S. and UK regulators over unethical activities and it now seem there is no end in sight yet for JPM. The investigation launched into the conduct of JPM’s UK trading boss Richard Usher could be the latest addition to controversies facing JPM. But this time around, the bank is expected to have little worries over the investigation because the alleged foul play by its official were committed long before he was hired by the bank.
However, on image, the investigation has a tarnishing impact that the bank doesn’t deserve at this time. That is why it’s still a concern for the investors.
The Usher, who formerly worked for Royal Bank of Scotland before joining JPM, is investigated by the Financial Conduct Authority (FCA) of UK for alleged manipulation of currencies. The JPM’s UK trade leader is accused of putting sensitive information to the wrong hands in his messages to the employees.
Of course, these are investigation and not charges, so it means the investigation could return wrongdoing on the side of Usher or nil. As much as Usher was not with JPM at the time of the alleged manipulation, the JPM fraternity must be praying for exonerating findings, just to save the image of the company and tenure of one of its most brilliant executives.
If the investigations find Usher on the fault, he would shoulder the weight of the trials without causing JPM to bleed more dollars directly into the case.
Having been used to paying billions of dollars in fines, regulators are now proposing stiffer regulations for banks. But this again brings the complex views of the “too big to fall” institutions.
