JPMorgan Faces Another Penalty

    A JPMorgan sign is seen outside the office tower housing the financial services firm's Los Angeles, California offices, August 8, 2013.  US banking giant JPMorgan Chase said August 8, 2013 it is facing parallel civil and criminal investigations over its sale of mortgage-backed securities before the financial crisis. JPMorgan disclosed in a securities filing that in May it was notified by the civil division of the US Attorneys Office for the Eastern District of California stating that it had preliminarily concluded that the bank "violated certain federal securities laws" in connection with the subprime mortgage-backed securities. AFP PHOTO / Robyn Beck        (Photo credit should read ROBYN BECK/AFP/Getty Images)

    Robyn Beck/AFP/Getty,ROBYN BECK

    Thursday was an expensive day for JPMorgan Chase. First, the bank signed off on a $920M fine over the reckless trading actions of the “London Whale.” That particular deal had been telegraphed for the past few days. But in the afternoon, the bank took another hit. The Consumer Financial Protection Bureau announced it ordered JPMorgan Chase to refund $309 million to some 2 million credit-card customers who bought “credit protection” products. According to the CFPB, the bank would charge people for credit-monitoring services even if they hadn’t signed up. The bank was also ordered to pay a $20 million fine to the CFPB and a $60 million fine to the Office of the Comptroller of the Currency.

    Read it at Consumer Finance