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JPMorgan accused of evading capital requirements


Published on 2025-05-23 08:40:53 - Fortune
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  • JPMorgan was accused of evading capital requirements created to prevent another financial crisis
  • a claim the bank denies. Is the Fed looking the other way?

A former JPMorgan Chase employee, Nishant Poddar, has accused the bank of manipulating its financial reporting to obscure the true size of its trading business, aiming to evade capital requirements set by regulators. Poddar, who worked as a vice president in the bank's corporate and investment bank division, claims that JPMorgan misclassified billions of dollars in trading assets as part of its securities services business, which faces less stringent capital rules. This alleged misclassification allowed the bank to reduce the amount of capital it was required to hold, thereby boosting its profitability. The accusations, detailed in a lawsuit filed in New York, come at a time when regulatory scrutiny of major banks' capital practices is intensifying. JPMorgan has denied the allegations, asserting that it adheres to all regulatory requirements and that Poddar's claims are baseless.

Read the Full Fortune Article at:
[ https://fortune.com/2025/02/28/jpmorgan-employee-accused-bank-obscuring-true-size-trading-business-evade-capital-requirements/ ]