JP Morgan is reportedly planning to spend an additional US$4 billion and commit 5,000 extra employees to fix risk and compliance issues after a slew of probes by regulatory authorities.
The bank will spend US$1.5 billion on managing risk and complying with regulations and plans to add US$2.5 billion to its litigation reserves in the second half of the year, the Wall Street Journal has reported.
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The bank will also increase its risk-control staff by 30%, according to the publication.
The bank would add more than US$1.5 billion to its legal reserves in the third quarter and add 3,000 people to control functions while another 2,000 assigned to the bank’s various business lines are also working on compliance issues.
Jamie Dimon chief executive said, "Fixing our controls issues is job No. 1. This is a huge investment of people, time and money but it will make us stronger in the long run."
The bank called the effort ‘unprecedented’ and said it now involves 23 different work streams to fix its controls, abide the bank secrecy act and fight money laundering.
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By GlobalDataJP Morgan has spent about US$5 billion, pre-tax, on litigation in each of the past two years and reported US$21.3 billion in net income for 2012.
JPMorgan has been under intense scrutiny from regulators since May 2012.
