JPMorgan Chase & Co. was ordered by U.S. regulators to strengthen risk and auditing controls after the company lost more than $6.2 billion on botched derivatives trades last year, Bloomberg News reported yesterday. The firm also promised to bolster systems to prevent money laundering. After reviewing the unit that suffered the losses, the Federal Reserve faulted JPMorgan's management and modeling of risks, as well as its auditing functions and the process for communicating problems to the board of directors. The central bank and the Office of the Comptroller of the Currency both issued cease-and-desist orders focusing on that unit, known as the chief investment office, as well as broader anti-money- laundering controls.
