“Federal banking regulators hit JPMorgan Chase with two enforcement actions on Monday for failures in risk management that led to a multibillion-dollar trading loss, the first formal sanctions in a case that damaged the bank’s reputation and brought heightened scrutiny to its trading operations. The regulators also ordered the bank to fix breakdowns in money-laundering controls that threatened to allow tainted money to move through its network..

The dual cease-and-desist orders from the Office of the Comptroller of the Currency and the Federal Reserve came just as the nation’s largest bank is poised to report earnings on Wednesday and potentially issue its own report publicly on the trading debacle.

The regulators identified deficiencies in several layers of the bank, from flaws in assessing potential losses due to complex trades to failures by bank executives to fully inform the board about the increasingly risky wagers.”

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