These are hard days for them. Coming just months after Securities and Exchange Commission came down heavily on Goldman Sachs for failing to inform its customers about the synthetic Collateralized Debt Obligations (CDO’s), the British financial regulator The Financial Services Authority (FSA) slapped a fine of £33.32 million for failing to keep the client’s money separate from the firm’s money.
This error occurred after the merger of JP Morgan and Chase. It is interesting to note that the FSA has been criticized for allowing British banks to take too much risk in the run up to the subprime crisis. The amount of fine to be paid by the bank is after a discount of 30% as FSA found that JP Morgan cooperated throughout the length of the investigation and agreed for an early settlement. Also, what may surprise many is the fact that JP Morgan reported the issue on its own after it detected the error on its part.
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