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Thursday, January 9, 2014

JPMorgan Chase plans to exit prepaid card business, (NYSE: JPM)

JPMorgan Chase & Co plans to sell or wind down its business of issuing prepaid cards for corporate payrolls and government tax refunds and benefits, the company said on Thursday. The product, which has been offered with cash and treasury services to companies and governments, had become a headache of risks in operations and regulations, according to a person familiar with the matter who was not authorized to speak publicly.Last month JPMorgan warned some 465,000 holders of the cards that their personal data may have been accessed by computer hackers who attacked its network in July.Government regulators are focusing on whether corporate payroll programs that use the cards have sufficient safeguards against burdening employees with fees.For the past year the company has been moving to simplify its operations after its risk controls and guards against money laundering were found deficient by regulators.

JPMorgan Chase & Co. (JPMorgan Chase) is a financial holding company. Shares of JPM fell by 0.86% or $-0.505/share to $58.36. In the past year, the shares have traded as low as $45.35 and as high as $59.47. On average, 18152100 shares of JPM exchange hands on a given day and today's volume is recorded at 4429088.