ECB Imposes Multi-Million Euro Fine on US Bank J.P. Morgan - J.P. Morgan hit with €12.2M ECB fine for years of flawed financial reporting
J.P. Morgan, a prominent US bank, has been fined €12.2 million by the European Central Bank (ECB) for reporting incorrect financial figures over five years. The bank, previously penalised for anti-money laundering failures, now faces fresh scrutiny over underreported risk-weighted assets. The ECB claims these inaccuracies misled regulators about the bank's true financial health.
The ECB's banking supervision arm found that J.P. Morgan submitted lower risk-weighted asset figures than required between 2019 and 2024. By doing so, the bank artificially boosted its capital ratios—a critical measure of stability against potential losses. Regulators described the errors as stemming from 'clear deficiencies in internal processes, committed with gross negligence.'
This is not the first recent penalty for the US-based bank. In late 2023, Germany's financial watchdog, BaFin, fined J.P. Morgan €45 million for weaknesses in its anti-money laundering controls. The ECB, which oversees the eurozone's largest banks, has now added its own sanctions.
J.P. Morgan retains the right to appeal the ECB's decision before the European Union's General Court. So far, the bank has not publicly responded to the latest allegations or fines.
The fines bring J.P. Morgan's total penalties from European regulators to over €57 million in less than a year. The ECB's ruling highlights ongoing concerns about the bank's internal controls and reporting accuracy. The case may now proceed to legal review if the bank chooses to challenge the decision.
