JPMorgan conducts ‘deep dive’ review after Wells Fargo’s scandal
(Bloomberg) -- JPMorgan Chase is conducting a “deep dive” into its sales practices after rival Wells Fargo settled a probe into the opening of unauthorized accounts.
While JPMorgan found some lapses, the problem wasn’t “systemic,” Chief Financial Officer Marianne Lake said Friday in a conference call with journalists, adding that the review is ongoing.
“We will occasionally find issues,” she said. “The important thing is we are focused on finding them. We’re not seeing anything rising to the level where we would be concerned.”
Banks are under increased pressure from lawmakers and customers to avoid abuses after Wells Fargo agreed to pay $185 million to resolve investigations into bogus accounts.
CEO John Stumpf, who stepped down this week, had promoted the cross selling of products, such as pitching credit cards to mortgage customers. Wells Fargo said it fired 5,300 employees over fake accounts, and Lake said that JPMorgan has already taken action in instances of staff misbehavior.
The compensation loss is the biggest for a major U.S. bank chief since the 2008 financial crisis.September 28
The penalty is the largest ever imposed by the Consumer Financial Protection Bureau.September 8
“We can’t have zero defects,” Lake said. “Our incentive compensation is designed for the right behaviors.”