ECB - European Central Bank

ECB Fines J.P. Morgan SE €12.18 Million for Misreporting The European Central Bank (ECB) has fined J.P. Morgan SE €12.18 million for misreporting capital requirements due to wrongly calculated risk-weighted assets. Between 2019 and 2024, the bank misclassified corporate exposures and excluded certain transactions, underreporting its risk-weighted assets for 15 and 21 consecutive quarters, respectively. This led to higher reported capital ratios than appropriate. The ECB classified the breaches as severe and moderately severe, citing serious negligence and deficiencies in internal processes. J.P. Morgan can contest the decision at the Court of Justice of the European Union.