From CNBC: 2024-09-27 10:15:11

JPMorgan Chase under scrutiny by the Consumer Financial Protection Bureau for potential penalties related to Zelle, a digital payments network. Bank accused of failing to remove criminal accounts and compensate scam victims. Bank considering litigation in response to investigation.

Recent battles between banks and regulators have led to unprecedented levels of tension. Factors like populist attacks on banks and regulatory changes are creating a hostile environment for the industry. Disputes over fees and regulations have sparked conflicts between banks and government agencies.

Regulatory efforts aimed at reducing fees on late payments and overdrafts have put banks on the defensive. Proposed regulations could impact consumer costs by increasing mortgage rates and credit card fees. Banks are pushing back to avoid shouldering the burden of regulatory costs.

JPMorgan’s involvement with Zelle has come under scrutiny after allegations of failing to reimburse defrauded customers. Bank disputes Senate report findings and emphasizes commitment to protecting customers from scams. CEO Jamie Dimon leads efforts to challenge regulations that could impact consumers.

Banks have been leveraging litigation in conservative courts to resist regulatory changes. Industries like banking have filed lawsuits in jurisdictions known for favoring corporations. The influence of these legal battles on regulatory decisions could stifle necessary changes in the industry while protecting large corporations.

Read more: JPMorgan Chase is prepared to sue the U.S. government over Zelle scams