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