Oct 8 (Reuters) - JPMorgan Chase & Co is looking to cut back on lending to businesses it sees as posing risks to its reputation amid a period of heightened regulatory scrutiny, the Wall Street Journal reported, citing people close to the situation.
The biggest U.S. bank has launched an internal review of its commercial-lending clients that could result in the elimination of relationships with companies such as pawn shops, payday lenders, check cashers and some car dealerships, the business daily said.
The process could cut hundreds of millions of dollars from the bank’s annual revenue, the Journal quoted one of the people as saying. ()
A JPMorgan spokesman could not be immediately reached for comment outside regular U.S. business hours.
The move comes at a time when big banks are under pressure to improve anti-money laundering controls and authorities in New York have sought to rein in payday lenders.
JPMorgan is also in talks with government officials to settle federal and state mortgage probes for $11 billion.
In other moves aimed at reducing complexity and risks in its business, JPMorgan has recently pulled away from student lending and decided to exit its physical commodities business.