JPMorgan Operating Risk Rises With Past Seen as Prologue

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon has pledged billions of dollars to improve compliance and cybersecurity. That’s not stopping regulators from treating the bank as if it were riskier than ever.

The firm’s operational risk-weighted assets, a measure devised by regulators that determines how much capital the bank needs to hold against potential losses from human error, external threats, fraud and litigation, rose 6.7 percent in the second quarter to $400 billion, according to an August filing. Regulators can point to $23 billion of legal settlements last year and a cyber-attack discovered last month as they push JPMorgan to boost its buffer against unforeseen losses.