JP Morgan fined $920m for "tempest in teapot", with "more to come".

Guardian: “Last spring the City of London was rife with rumours about a trader at the vast JP Morgan investment bank who was making such huge bets on the highly complex – and deeply risky – derivatives markets that he was known as “the London Whale” or “Voldemort”. After racking up losses of $6bn (£3.7bn) from his reckless trading, the London Whale blew another hole in the bank on Thursday – landing the Wall Street firm with one of the largest fines ever levied against a single bank.” “The Whale was a French-born trader, Bruno Iksil. When stories of his dangerous dealings and the scale of the potential black hole first surfaced, JP Morgan’s chairman Jamie Dimon, then Wall Street’s most respected banker, shrugged off the losses off with a phrase that will haunt his career: “It’s a complete tempest in a teapot,” he insisted.
On Thursday, however, the bank agreed to pay some $920m in penalties to US and UK regulators over the “unsafe and unsound practices” that had allowed the bank’s losses to balloon to $6.2bn. The near record fine comes as former JP Morgan bankers face criminal action in the US and it has all but sunk Dimon’s once promising political career.”
….JP Morgan admitted wrongdoing as part of the settlement – an unusual step for a financial firm in the crosshairs of multiple legal actions. This week, in a letter to staff, Dimon warned them that, even after the fine, there was “more to come”.
The opinions of the regulators were uniformly damning. “JP Morgan failed to keep watch over its traders as they overvalued a very complex portfolio to hide massive losses,” co-director of the SEC’s division of enforcement, George Canellos, said. Senior management “broke a cardinal rule … and deprived its board of critical information,” he said. The bank was accused of “unsafe and unsound practices”.
….Regulators are reported to be pressing for a $6bn penalty to settle allegations that the bank mis-sold $33bn of bonds backed by sub-prime mortgages to US government-controlled mortgage companies in the run-up to the financial crisis.
….Dimon has learned from his “teapot” comment and is now expressing contrition for the bank’s debacle. “We have accepted responsibility and acknowledged our mistakes from the start, and we have learned from them and worked to fix them,” he said. This year the bank has hired 3,000 staff to work on “compliance” – or working within the rules.
….Largest fines:
$25bn Five banks – Wells Fargo, JP Morgan, Citigroup, Bank of America and Ally Financial – hit in 2012 with bill totalling £15.6bn for abusing the procedures to repossess homes.
$9.3bn 13 Banks, including JP Morgan, Wells Fargo and Bank of America, ordered this year to pay equivalent in cash and other help to homeowners for abusing procedures to repossess their homes.
$1.9bn HSBC’s 2012 fine for failing to prevent money laundering on a massive scale.
$1.5bn UBS (Switzerland) was fined this much last year for manipulating Libor, the interbank lending rate.
$1.4bn  10 banks, including JP Morgan and Goldman Sachs, hit in 2003 with fines for serious conflicts of interest between their research for investors and their investment banking businesses.”