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MStant1 
LSU Fan
New York, NY
Member since Sep 2010
4056 posts
| JP Morgan C&D Order (Posted on 1/11/13 at 7:52 am)
Another bank in trouble. Regulators are having a field day lately.
Reuters
quote:
A U.S. regulatory probe of JP Morgan Chase & Co is expected to result in an order that the bank correct lapses in how it polices suspect money flows, in an action expected as soon as Friday, people familiar with the situation said.
The action would be in the form of a cease-and-desist order, which regulators use to force banks to improve compliance weaknesses, the sources said.
Banks need to learn that money laundering regs are here to stay and will only get more stict in the future.
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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
63859 posts
| re: JP Morgan C&D Order (Posted on 1/11/13 at 7:59 am to MStant1)
quote:
Banks need to learn that money laundering regs are here to stay and will only get more stict in the future.
You sound like you don't think banks already believe that.
From your link:
quote:
JP Morgan is not expected to pay a monetary penalty, according to one person familiar with the situation.
Yeah, that will show those crooks!!
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MStant1
LSU Fan
New York, NY
Member since Sep 2010
4056 posts
| re: JP Morgan C&D Order (Posted on 1/11/13 at 8:40 am to LSURussian)
quote:
You sound like you don't think banks already believe that.
I think banks are finally starting to take them more seriously, but I wouldn't say they are there yet. I deal with large banks every day on these matters; many simply don't care or care enough.
quote:
quote:
JP Morgan is not expected to pay a monetary penalty, according to one person familiar with the situation.
Yeah, that will show those crooks!!
I'm not saying they are crooks. I know better than most that the AML regulations are ridiculously vague and that the OCC constantly have a moving target with regards to their expectations.
As to JPMC escaping without a fine; I would guess this is due to the fact that there were no highly egregious or blatant violations like with some of the other banks that have been in the news lately.
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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
63859 posts
| re: JP Morgan C&D Order (Posted on 1/11/13 at 8:56 am to MStant1)
One of my problems with the AML regs is the ridiculously low limit. It's been $10,000 for how long? 20 years? Maybe longer. I don't remember the reporting limit ever being increased even with multi-decades of inflation.
The FDIC limit went from $100,000 to $250,000 in 2008 yet the AML limit remained at $10,000.
It places a burden on banks and bank customers while doing little to "catch" the money launderers.
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MStant1
LSU Fan
New York, NY
Member since Sep 2010
4056 posts
| re: JP Morgan C&D Order (Posted on 1/11/13 at 12:19 pm to LSURussian)
quote:
One of my problems with the AML regs is the ridiculously low limit. It's been $10,000 for how long? 20 years? Maybe longer. I don't remember the reporting limit ever being increased even with multi-decades of inflation.
The FDIC limit went from $100,000 to $250,000 in 2008 yet the AML limit remained at $10,000.
It places a burden on banks and bank customers while doing little to "catch" the money launderers.
The problem is that most of the aspects relative true money laundering are all based off the Bank Secrecy Act from the 70's. Even the most recent enhancements that were within the PATRIOT Act focuses more on the perspective of Terrorist Financing rather than true money laundering.
The other problem is that the PATRIOT Act requires multitude of things, but frequently leaves out the details on how it is expected to be done. This leaves it open to however the reg examiner thinks it should be when he walks into the bank's doors. As I said the regulator's expectation is a moving target. The OCC is especially hostile now after being embarrassed by the senate hearings over HSBC in the summer.
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Jim Rockford
LSU Fan
Member since May 2011
23958 posts
 Online
| re: JP Morgan C&D Order (Posted on 1/11/13 at 6:18 pm to MStant1)
quote:
I'm not saying they are crooks.
In my opinion, JPM is an extremely shady outfit.
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jso0003 
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4469 posts
| re: JP Morgan C&D Order (Posted on 1/11/13 at 6:33 pm to LSURussian)
quote:
One of my problems with the AML regs is the ridiculously low limit. It's been $10,000 for how long? 20 years? Maybe longer. I don't remember the reporting limit ever being increased even with multi-decades of inflation.
Since 1970, and they'll never change it unless they absolutely have to.
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TxTiger82
LSU Fan
Madison, WI
Member since Sep 2004
21633 posts
| re: JP Morgan C&D Order (Posted on 1/11/13 at 8:46 pm to MStant1)
What influence might this have on JPMC stock?
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MStant1
LSU Fan
New York, NY
Member since Sep 2010
4056 posts
| re: JP Morgan C&D Order (Posted on 1/12/13 at 12:59 pm to TxTiger82)
Probably little if HSBC or Standard Chartered are any indication.
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