JPMorgan Chase will pay $920 million in regulatory fines related to its London Whale trading scandal, adding to the $6 billion in losses the bank already took as a result of the trades.

The fines were assessed by the Federal Reserve Board, Office of the Comptroller of the Currency, Securities and Exchange Commission and the United Kingdom's Financial Conduct Authority, with each citing "unsafe and unsound practices" related to the bank's derivatives business.

Separately, the OCC also slapped JPMorgan with a cease and desist order related to the bank's credit card debt collection litigation and its failure to comply with the Servicemembers Civil Relief Act. That order requires the bank to provide remediation to affected customers and correct deficiencies in its practices and procedures. The amount of the remediation has not yet been determined.

For the London Whale trading scandal, the OCC, which assessed a $300 million civil money penalty, said the bank "failed to identify and prevent certain credit derivatives trading" that resulted in massive losses to the institution. It also criticized JPMorgan for inadequate oversight and governance to protect the "to protect the bank from material risk."

"Banks are in the business of managing risk, and bank management must implement the appropriate governance, controls, risk management and audit functions to ensure the bank operates in a safe and sound manner," Comptroller Thomas Curry said in a press release. "Bank management must also ensure open and effective communication with supervisors, so that we can effectively do our jobs. Anything less is unacceptable and will not be tolerated."

Curry said the nearly $1 billion in fines combined with the losses should serve as "important reminders to all bankers of the importance of prudent controls, strong governance, and effective risk management."

The Fed and the SEC each assessed a $200 million penalty, while the U.K.'s FCA assessed a penalty of roughly $220 million. The Fed and SEC actions are against JPMorgan's holding company, while the OCC and FCA actions are against the bank.

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry