A Fresh Indignity For Jamie Dimon

He may not be going anywhere, but he’ll have to stand behind John Stumpf at industry gatherings this year.

J.P. Morgan Chase & Co. on Tuesday relinquished its position as the U.S. bank with the highest annual profit, capping a year marked by a slew of regulatory and legal issues.

The New York bank ceded the spot it held since 2010 to Wells Fargo & Co. after J.P. Morgan reported fourth-quarter earnings of $5.28 billion, down 7.3% from a year earlier.

At San Francisco-based Wells Fargo, fourth-quarter earnings rose 10% to $5.6 billion and full-year earnings rose 16% to $21.8 billion. That was enough to surpass J.P. Morgan’s $17.9 billion, a figure that was down 16% from 2012, as legal costs cut deeply into the bank’s bottom line.

Wells’s ascension is largely symbolic—J.P. Morgan would have remained on top had it not been for $11.1 billion in legal expenses—but it does underline the rapid expansion of a West Coast bank that uses a horse-drawn stagecoach as its corporate icon.

Wells Fargo Is Now No. 1 Bank Profit Maker [WSJ]

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4 Responses to “A Fresh Indignity For Jamie Dimon”

  1. guest says:

    Largely symbolic? I seem to recall seeing JPM's name mentioned in recent investigations into forex, commodities, gse bonds, private equity, derivatives, etc… It seems to be turning into a litigation firm that does commercial banking.

  2. guest says:

    Nice of the gov't to raise capital requirements just so they have fresh cash to loot from the banks.

    Let's see how Well's profit keeps up the next few years as mortgage rates rise and their biggest business goes down the shitter. The carriage can't be drawn well by a one-trick pony

  3. Bored Guest says:

    horse-drawn stagecoach as its corporate icon > cetacean as its corporate icon > CFA as its corporate icon (Michelin) > MBA as its corporate icon (Starbucks)