Back in the day, JP Morgan had no issue with managing the investment account of Sigma Alpha Epsilon’s charitable foundation. Then the bank’s reputation took a hit in the eyes of the regulatory industry, and started paying multi-billion dollar fines, and had its hiring practices in China questioned, and it was forced to reevaluate some of the people with whom it did business. At the same time, SAE was setting records for deaths “linked to drinking, drugs and hazing,” and someone decided JPM had enough bad publicity of its own without being linked to an organization that makes people strip down to their underwear, stand in a trash can filled with ice, and recite a credo about what it means to be a “true gentlemen.”
That JP Morgan, it of $23 billion “to resolve regulatory and criminal investigations,” of rogue whales, of possible Foreign Corrupt Practices violations, decided it could be hurt by an association with SAE was extremely troubling to national President Bradley Cohen. “If JPMorgan is going to turn us down, who’s next?” he wondered aloud to Bloomberg. “What if universities start saying SAE’s not welcome?” The thought was too much to bear, so he did a bunch of thinking and decided that pledging could no longer be part of the Sigma Alpha Epsilon way.
A lot of people, like the parents of kids who died trying to get into the fraternity, thought this was a good move. One Oklahoman, did not. Read more »
Back in November, JP Morgan announced that it would be offering up Vice Chairman Jimmy “Get Tom Brady On The Phone” Lee for questioning by the people of Twitter. The pre-show did not go well and the whole thing had to be canceled, in part because it somehow wasn’t anticipated that there might be lingering questions about the billions the firm had lost/was fined/was about to be fined. Today, the bank has demonstrated that it took its remedial interenet classes seriously, and redeemed itself with this: Read more »
A feisty Jamie Dimon said that he’s not planning on resigning in the wake of a raft of fines that has plagued JP Morgan over the past year. Asked if he would consider resigning on a conference call this morning to discuss the bank’s fourth-quarter results with reporters, the chairman and CEO fired off: ”No, no and no.” He qualified his comments in the same breath, “And it’s all up to the board.” [Quartz]
Like Bank of America, JP Morgan, and Goldman Sachs before it, Credit Suisse announced this week that analysts and associates will have some semblance of a weekend, moving forward. Unlike JP Morgan’s monthly “protected” weekend and BofA’s “take the number of UNAUTHORIZED weekend days you were previously working and cut it in half,” Credit Suisse has chosen to adopt the Goldman Sachs 36-hour weekend model, unless of course urgent work needs to be done, in which case, consider your ass glued to that desk. Read more »
To settle a barrage of government legal actions over the last year, JPMorgan Chase has agreed to penalties that now total $20 billion, a sum that could cover the annual education budget of New York City or finance the Yankees’ payroll for 100 years. It is also a figure that most of the nation’s banks could not withstand if they had to pay it. But since the financial crisis, JPMorgan has become so large and profitable that it has been able to weather the government’s legal blitz, which has touched many parts of the bank’s sprawling operations. The latest hit to JPMorgan came on Tuesday, when federal prosecutors imposed a $1.7 billion penalty on the bank for failing to report Bernard L. Madoff’s suspicious activities to the authorities. Yet JPMorgan’s shares are up 28 percent over the last 12 months. Wall Street analysts estimate that it will earn as much as $23 billion in profit this year, more than any other lender. And JPMorgan’s investment bankers, who on average earned $217,000 in 2012, can look forward to another lush payday as bonus season approaches. “The fines have been manageable in the context of the bank’s earnings capacity,” Jason Goldberg, a bank analyst at Barclays, said. “It makes $25 billion in revenue per quarter and has record capital.” [Dealbook]