For years, US regulators prohibited the expansion of the nation's largest bank
For almost six years, government regulators secretly constrained the growth of the nation’s largest bank.
As punishment for violating banking rules, Obama administration regulators prevented JPMorgan Chase from opening branches in new states, according to a Bloomberg report. The regulatory actions had never before been made public.
Those regulatory restrictions have been lifted now thanks to the friendlier regulatory environment of the Trump administration, allowing the bank’s announcement earlier this year of ambitious expansion plans.
Since the 2008 financial crisis, JPMorgan has been hit with more than $30 billion in penalties and legal costs, according to Bloomberg. The bank has also found itself involved in scandals including failing to flag transactions related to Bernard Madoff’s Ponzi scheme.
According to people familiar with the matter, the Office of the Comptroller of the Currency (OCC) privately stopped JPMorgan from expanding into additional states while it worked on fixing its compliance missteps. That restriction, enacted quietly in 2012, remained in place for nearly six years, according to Bloomberg.
“We are extremely excited to be expanding again, as smart regulatory policy and a competitive corporate tax system help us deliver on our commitment to invest in our customers and communities,” JPMorgan CEO Jamie Dimon said Oct. 12.
Although the OCC has relaxed its hardline stance on JPMorgan’s growth, the agency still has enforcement actions open against the banking giant.
