Regulators investigating JPMorgan, Bank of America for money laundering

By Catholic Online (NEWS CONSORTIUM)
9/16/2012
Catholic Online (www.catholic.org)

New York Times story says sources request anonymity

The Office of the Comptroller of the Currency, or OCC, the federal agency that oversees the biggest banks is reportedly investigation Bank of America and JPMorgan on suspicion of money laundering. According to the New York Times, officials spoke of the investigation on the condition of anonymity.

Money laundering is a common criminal practice where people make money from illegal means and then re-route to make it appear like it came from a different source.

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LOS ANGELES, CA (Catholic Online) - The OCC could soon take action against JPMorgan Chase & Co., and that it is also investigating Bank of America Corp.

Money laundering is a common criminal practice where people make money from illegal means and then re-route to make it appear like it came from a different source.

The financial industry has lost favor with the U.S. public over the past few years. Hidden fees, debit transactions and the like has made many American learn to live without banks. Regulators are under increasing pressure to prove that banks are not doing any questionable activity. In order to win back the public's trust.

British bank Barclays PLC settled charges that it had manipulated a key global interest rate this past summer. Standard Chartered PLC, also in the U.K., agreed to settle charges that it had improperly processed money for Iran. JPMorgan surprised shareholders with an unexpected trading loss last spring.

If the OCC presses forward, the outcome could be similar to a cease-and-desist order that it filed against Citigroup in April. OCC said at the time that Citi had deficient internal controls and anti-money laundering procedures. In bank regulation, a cease-and-desist order doesn't mean that a bank has to shut down -- but it is a serious sanction that requires a bank to change its practices. Citi had already told the regulator that from 2006 to 2010, it had "failed to adequately monitor" some of its transactions connected to "foreign correspondent banking."

The orders instructed Citigroup to tighten its rules so it could improve compliance with the Bank Secrecy Act and related regulations. The Secrecy act requires financial institutions to report suspicious activity.

JPMorgan paid $88 million to settle charges from the Treasury that it had unlawfully processed money for Cuba, Iran, Sudan and Liberia last year.

JPMorgan said at that time it had had no intent to violate regulations, pointing out that it oversaw "hundreds of millions of transactions and customer records per day, and annual error rates are a tiny fraction of a percent."

It's likely that the banks in question will be accused of faulty oversight that made any unlawful transactions possible. The industry has maintained that such violations are almost always unintentional.

� 2012, Catholic Online. Distributed by NEWS CONSORTIUM.

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Keywords: JPMorgan, Bank of America, OCC, money laundering

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1 - 2 of 2 Comments

JoAnn
7 months ago
FYI: J. P. Morgan was one of the banks that secretly went to Jekll Island to form the Federal Reserve. The moment that Federal Reserve Act was signed by Woodrow Wilson in Dec. 1913, the American people lost control of their money. God bless.
Zion
8 months ago
In 3 years I've tried 6 attempts to modify back to the 5.75% loan and I was denied once and I was ignored on the other attempts. I was not being greedy or forcefull, I just wanted my original LOCK-IN AGREEMENT! Because no loan is equal, neither is the statement true, Equal housing Opportunity and Equal housing lender. How can they be equal if they judge and condemn the poor and glorify the rich? I was told I could not afford the cheaper loan when I immediately called countrywide, but I had to sign because my family was going to be on the street if we waited and the bank new this. Our first time buying a house was hell, so shall fire come down from heaven by God's hand. Because of Countrywides and Bank of Americas afflicting deeds of and exploiting the wages towards Americans, the worth of my house and property has decreased $50,000. The same amount they are foreclosing on my loan for. I find my house in pre-foreclosure online at 2/3 the price they're trying to keep me obligated to under a predatory loan that changed on me without notification. I did not know this until I went to sign in 2008. I was locked-in at 5.75% and they changed it to 6.25%. It was supposed to be $0 down, 0 credit, $0 at closing as the builder claimed, but we ended up having to give our last $3,000 to our name. Now for some reason, probably to hide the way I have been treated ever since we purchased the loan and house, no-one seems to be able to find my lock-in agreement document that even my escrow and loan documents states is supposed to be there. So instead of giving me a copy of my lock-in agreement, B of A is foreclosing on me and trying to sell my note and loan to someone else trying to hide what they did and how they treated, a White, American Indian, German and Irish American Christian Child of God. I am telling the World, Universe and God Himself, to deal with Banks, greed, exploitation and their judging against man and his credit. So shall they all exploiters and extortioners of mans wages be given what they have done to God's Children, DOUBLE in the Name of My Lord, Jesus Christ, in the form of storms and solar flares with God, His Spirit, Power, His Son and Blood being added in the Air, Light, Solar substance and water too, with God's energy and power piercing through and eternally purifying All physical and spiritual substance. It IS DOne!

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