Op risk data: Frank fiasco costs JP Morgan $175m; BNP settles $41m mis-selling suit
Also: Internal fraud burns fewer fingers, but flame is far from out. Data by ORX News
A bold scheme that duped JP Morgan out of $175 million resulted in April’s largest op risk loss. The bank gave up this sum to acquire the online student loan application platform Frank. But during their negotiations, it turned out platform founder Charlie Javice had been less than frank. Javice repeatedly misrepresented the size of the platform’s clientele by an order of magnitude, claiming it had 4.3 million users. In reality, it had fewer than 300,000
The US Department of Justice and the
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