US banking regulators have ordered JP Morgan Chase and Co to improve its risk controls after the bank suffered huge losses following bad bets by a trader in London.
The unnamed trader, nicknamed the London Whale because of the size of the positions he took, lost $6.2bn through bad trades.
Reuters reports the Federal Reserve and the Office of the Comptroller of the Currency have forced the bank to submit a plan to improve its risk controls within 60 days.
The regulator did not levy a fine on JP Morgan or place blame on any individuals for the controls failings.
The FSA says it is also investigating the losses.
It says: “Conclusions will be reached in the enforcement investigation in due course and any further appropriate action determined at that time.”