JPMorgan is spending significant amount of money to improve its IT security, but regulators are still concerned about the company’s significant risk. Its operational risk-weighted assets or RWAs a benchmark regulators use to indicate the amount of capital needed as a protection against potential losses from human error, external threats and fraud, rose 6.7% in 2014 to $400 billion. This means that JPMorgan will need more money to protect itself, which isn’t surprising, given recent cybersecurity threats and the $23 billion in legal settlements in the past year.
Mariane Lake, CFO, said regulators were being too rough on JPMorgan “It’s our belief that the firm today and going forward is not exposed to the levels of risk anywhere near the scale” that regulators are predicting. Bank of America and Citigroup also had to raise its operational risk-weighted assets by $26 billion and $56 billion respectively.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
CEO Jamie Dimon in a letter said that it would increase spending on cybersecurity, and it is no longer working with “potentially risky clients, including 500 foreign banks and sold or shuttered businesses exposed to regulatory scrutiny, such as physical commodities.”
JPMorgan’s image is still suffering from the $6.2 billion loss created by the JPMorgan trader known as London Whale in 2012.
