The European Central Bank announced it has imposed a fine of 12.2 million euros on the US bank JPMorgan for incorrect risk reporting, the largest fine ever imposed by the European financial institution.
The Frankfurt-based bank stated that the American investment bank reported higher capital reserves than it actually held, after it misclassified some transactions between 2019 and 2024 and excluded others from its calculations.
It added in a statement, “The bank committed two breaches due to gross negligence, resulting from a clear deficiency in its internal procedures,” noting that “the bank’s internal controls failed to detect the breaches in a timely manner.”
European fine on Crédit Agricole
Banks are required to hold certain amounts of cash or highly liquid assets in their portfolios, proportionate to their risk-weighted holdings.
Artificially reducing the proportion of high-risk assets on the bank’s books would have allowed JPMorgan to free up cash liquidity for investment in other areas.
Last week, the European Central Bank imposed a fine of 7.55 million euros on the French bank Crédit Agricole for delays in assessing environmental and climate risks.
European Central Bank
The European Central Bank (ECB) is the central bank for the euro and the core institution of the Eurosystem, responsible for monetary policy in the euro area. It was established in 1998 in Frankfurt, Germany, following the Treaty of Amsterdam to ensure price stability and manage the euro currency for its member states.
JPMorgan
JPMorgan is a major American multinational financial services firm founded in 1871 by J. Pierpont Morgan. It has played a central role in the development of modern U.S. finance, including stabilizing the banking system during the Panic of 1907.
Frankfurt
Frankfurt, officially Frankfurt am Main, is a major financial hub in Germany and the European Union, historically known as a free imperial city and the site of elections for Holy Roman Emperors. Its iconic skyline, dominated by modern skyscrapers, contrasts with reconstructed historical landmarks like the Römerberg square, reflecting the city’s heavy destruction during World War II and subsequent rebuilding.
Crédit Agricole
Crédit Agricole is a major French banking group, originally founded in the late 19th century as a network of local mutual credit unions to support agricultural development. It has since grown into one of the world’s largest financial services providers, while maintaining its cooperative structure and deep roots in the French regional economy.
