J.P. Morgan posts third quarter losses
The bank has posted legal expenses of around $9.2 billion dollars thus far this year and could settle a series of mortgage probes for an estimated $11 billion.
October 11, 2013 at 07:34 AM
2 minute read
The original version of this story was published on Law.com
It's been said about a dozen times on the IndsideCounsel site alone, but it bears saying again: 2013 has been a rough year for mega-bank J.P. Morgan Chase.
As of Oct. 11, the bank has announced a third-quarter net loss of $380 million, owing most of that loss to its embroilment in a number of ongoing probes and regulation infringements. Despite the losses, the bank still had a net income of $5.8 billion dollars, on revenue of $23.9 billion. The losses translate to a dip of approximately 17 cents a share.
The bank has posted legal expenses of around $9.2 billion dollars thus far this year and is currently in talks with the Department of Jusice to settle a series of mortgage probes for an estimated $11 billion. This figure has been in constant flux, however, and no official has been prepared to confirm it as of yet.
In a statement, Jamie Dimon, J.P. Morgan's chairman and CEO, commented on the state of affairs at the company: “While we had strong underlying performance across the businesses, unfortunately, the quarter was marred by large legal expense. We continuously evaluate our legal reserves, but in this highly charged and unpredictable environment, with escalating demands and penalties from multiple government agencies, we thought it was prudent to significantly strengthen them. While we expect our litigation costs should abate and normalize over time, they may continue to be volatile over the next several quarters.”
In September the bank paid a billion dollars in fines relating to credit card marketing violations and to settle investigations into the so-called “London Whale” derivatives trading scandal.
J.P. Morgan is not the only bank that is currently feeling the heat from federal investigation. In what appears to be increasing pressure from government regulatory bodies, Wells Fargo and Bank of America have also recently been the focus of probes, and investigation over mortgage securities they sold on the run up to the financial implosion of 2007.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllAlabama Man Arrested After Causing Bitcoin Price to Surge, Then Plummet After Fake SEC Tweet
3 minute readHunter Biden Sues Fox, Ex-Chief Legal Officer Over Mock Trial Series
Judge Sides With McDonald's In Attorney-Client Privilege Dispute With Former Executives
4 minute readMarriott's $52M Data Breach Settlement Points to Emerging Trend
Trending Stories
- 1The Law Firm Disrupted: Playing the Talent Game to Win
- 2A&O Shearman Adopts 3-Level Lockstep Pay Model Amid Shift to All-Equity Partnership
- 3Preparing Your Law Firm for 2025: Smart Ways to Embrace AI & Other Technologies
- 4BD Settles Thousands of Bard Hernia Mesh Lawsuits
- 5A RICO Surge Is Underway: Here's How the Allstate Push Might Play Out
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250