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JPMorgan Chase has agreed to pay $250 million for risk management and other control failings in its asset and wealth management business, a US regulator said Tuesday, in the second chunky penalty for the bank in less than two months. The Office of the Comptroller of the Currency said it found that JPMorgan’s risk management practices were “deficient and it lacked sufficient controls to avoid conflicts of interest.” The bank has since remediated the deficiencies that led to this action, it said. “We are committed to delivering best-in-class controls across our business, and we have invested significantly in and enhanced our controls platform over the last several years to address the issues identified,” a spokesman for the bank said in a statement. JPMorgan boasts one of the world’s largest and most complex asset and wealth management businesses, with $1.3 trillion in fiduciary assets and $27.8 trillion of non-fiduciary custody assets, the OCC said. The bank also provides a broad range of investment strategies to its fiduciary clients through a variety of investment vehicles. For several years, however, JPMorgan operated a weak management and control framework for its fiduciary activities and had an insufficient audit program for, and inadequate internal controls
General Motors will recall 5.9 million vehicles with potentially dangerous Takata air bag inflators after a US safety agency said Monday it had rejected the Detroit automaker’s petition to avoid the callback. The National Highway Traffic Safety Administration said GM must recall the 2007-2014 model year trucks and SUVs because the inflators “are at risk of the same type of explosion after long-term exposure to high heat and humidity as other recalled Takata inflators.” GM has estimated in securities filings it would cost $1.2 billion if it were required to replace air bag inflators it had sought to avoid fixing. The company had argued the recalls were unnecessary because they did not pose a safety risk. GM said Monday it still believed “a recall of these vehicles is not warranted based on the factual and scientific record.” The company said it “will abide by NHTSA’s decision and begin taking the necessary steps.” The defect, which leads in rare instances to air bag inflators rupturing and sending potentially deadly metal fragments flying, prompted the largest automotive recall in US history of about 63 million inflators. Worldwide, about 100 million inflators by 19 major automakers were recalled. The recall includes some Cadillac