Six Lessons from JPMorgan’s Terrible Thursday
By Rob Blackwell
To put it in the simplistic terms of a classic children’s story, JPMorgan Chase (JPM) had a “terrible, horrible, no good, very bad day” on Thursday, agreeing to pay more than $1 billion in regulatory fines and at least $300 million in restitution to customers. It was slapped with multiple cease and desist orders covering everything from its derivatives trading to debt collection practices to the sale of add-on products for credit cards. In statements, the bank apologized multiple times for the various errors and, in the words of one executive, promised to “get it right” going forward. It is a “sea change in enforcement actions by regulators,” said Karen Shaw Petrou, the managing partner of Federal Financial Analytics.