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The Federal Reserve of the U.S. is charging JP Morgan Chase for acts of fraud in the China hiring case. The financial giant has been under investigation for the past three years.
The Fed is seeking $62 million from the bank.
The Office of the Comptroller of the Currency (O.C.C.) will also be seeking its own penalties but to be later disclosed, according to the sources who asked to be unnamed.
However, both governing bodies clarified that JP Morgan is not particularly being penalized for bribery. The bank is being accused of hiring children of rich Chinese businessmen for internships and jobs to get special favors from state-run companies.
The bank is accused of improper hiring procedures. To avoid criminal charges, the bank was able to negotiate a special no prosecution arrangement.
The Fed, Securities and Exchange Commission (S.E.C.) and the O.C.C. are tightening regulations on Wall Street recently. Wells Fargo is being fined as well for issuing credit cards without consent and opening $1.5 million in bank accounts.
The bank is required to pay $185 million to the S.E.C.
Thomas Curry, in a statement read in the Senate Banking Committee in the U.S., said that the commission will be filing individual charges against Wells Fargo "directors, officers, and employees who violate any law or regulation, engage in unsafe or unsound practices or breach fiduciary duty."
Daniel Tarullo said that the American banks have not changed their ways of doing business and there is a need to have individual bankers accountable.
He said, "There is a need, I thin with a focus on individuals as well as put fines on the institutions."
