JPMorgan warns of another potential regulatory fine tied to weak ‘internal controls’ at bank

JPMorgan Chase said that it is facing another potential fine weeks after paying a record penalty, this time over internal controls in wealth management and other areas.

The bank disclosed the impending action late Monday in a filing, saying that one of its regulators told the New York-based company that it faced action “related to historical deficiencies in internal controls and internal audit over certain advisory and other activities.”

JPMorgan, the biggest U.S. bank by assets, said that it had already improved its controls tied to the proposed penalty and is in ongoing discussions with the regulator, which it did not name. Trish Wexler, a spokeswoman for the bank, declined to comment.

In late September, JPMorgan agreed to pay $920 million to settle investigations from three federal agencies over its role in the manipulation of global markets for metals and U.S. Treasurys. That was a record fine for spoofing, which is when sophisticated traders flood markets with orders they don’t execute to move prices in their favor.

In that case, the bank entered into a deferred prosecution agreement with the Department of Justice that will expire in three years if the firm satisfies its obligations under the deal.

This story is developing. Please check back for updates.