And little Jamie, little Holder wants $13 billion. Read more »
The bank will pay $4 billion over mortgages but not a penny more! The ghost of John Pierpont Morgan hath put his foot down! Read more »
JP Morgan Better Not Even Think About Passing One Cent Of That Fine Onto Checking Account Customers, Else It’s Lights Out: Checking Account Customer Dixie KlamfothBy Bess Levin
Amid the storm, J.P. Morgan continues to prosper in some of its core businesses. The bank increased deposits by 10.1% in the Federal Deposit Insurance Corp.’s survey of the 12 months ending in June, nearly double the industry average of 5.4%. Mr. Dimon has told audiences the bank is staying focused on customers, many of whom are concerned most about interest rates and fees. “Wow,” said Dixie Klamfoth, a customer in Circleville, Ohio, on learning J.P. Morgan is on the verge of receiving a historic fine from the Justice Department. She was surprised, she said in a phone interview, because “I feel that they have been a reputable company.” But Ms. Klamfoth said she has been satisfied with her Chase checking account, savings account and credit card. “I will be watching to see if they pass those fines onto me in the way of fees,” she said. “The moment they do, I will no longer do business with them.” [WSJ]
As you may have heard, the last number of months have not been so great for JP Morgan, legally-speaking. In addition to the London Whale fiasco, which the bank is still literally and figuratively paying for, there have been allegations of, well, take your pick: energy market manipulation, bribes for hires, playing it fast and loose with risky mortgage securities, and so on and so forth. The firm, which as of August 26th was cooperating with “at least seven separate probes” by the Justice Department, has stated that “future legal losses could be as much as $6.8 billion above its existing reserves,” and last month, the guy tasked with handling “all litigation and government investigations” threw up his hands and said “Fuck it, I can’t do this anymore.”
To that end, earlier today, CEO Jamie Dimon sent out a memo to employees detailing the “unprecedented effort” the bank is going to right past wrongs, but warned them that they weren’t out of the woods just yet.
“We are all well aware of the news around the legal and regulatory issues facing our company, and in the coming weeks and months we need to be braced for more to come,” Dimon said today in an e-mail to JPMorgan’s more than 250,000 employees.
JPMorgan, the largest U.S. lender, increased spending on internal controls by about $1 billion this year and dedicated more than $750 million “to address several of our consent orders,” Dimon said. At least 5,000 people at the New York-based company have been assigned to compliance, he said. The bank will pay at least $750 million to close regulatory investigations into its record London Whale trading loss last year, people familiar with the matter said this week. JPMorgan is operating under consent orders for previous violations that involved municipal bond trading, foreclosures, anti-money laundering practices and internal controls.
Obviously for legal reasons Dimon couldn’t get into what sort of surprises are around the corner re: “legal and regulatory issues.” But if the past is any indication, the sky’s the limit and one cannot entirely rule out the possibility of: Read more »