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JPMorgan to spend $4 billion, boost staff, to fix compliance and risk-control problems

Sep 12 2013 Lauren Tara LaCapra, Reuters

JPMorgan Chase & Co plans to spend an additional $4 billion and commit 5,000 extra employees to fix risk and compliance issues after a slew of investigations by regulatory authorities, the Wall Street Journal reported on Thursday. JPMorgan will spend $1.5 billion on managing risk and complying with regulations and plans to add $2.5 billion to its litigation reserves in the second half of the year, the Journal reported. The bank will also increase its risk-control staff by 30 percent, the WSJ said, citing people familiar with the matter. JPMorgan said on Monday that it would add more than $1.5 billion to its legal reserves in the third quarter and 3,000 people had been added to control functions. Another 2,000 assigned to the bank's various business lines are also working on compliance issues, a person familiar with the matter who would not provide the total cost told Reuters. Chief Executive Jamie Dimon said in April in his annual letter to shareholders that the bank's first

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