Embattled mega bank JPMorgan Chase is looking to scale back its involvement with certain types of businesses, the Wall Street Journal reported late Tuesday, seeking to lower its profile at a time when its reputation is under regulatory and legal assault.
According to The Journal, the bank is internally reviewing its commercial lending clients, which may result in the bank ending some of those relationships. These businesses, which include pawn shops, payday lenders, check cashers and certain car dealerships, pose a greater risk of fraud or money laundering, the report said--all of which could take a further toll on JPMorgan's already tarnished reputation.
The report added that the policy review could shave hundreds of millions of dollars off JPMorgan's annual revenue. The bank has already cut some clients and may reduce exposure to others, the report said, citing an unnamed source.
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