Share this on:
 E-mail
10
VIEWS
0
COMMENTS
 
SHARES
About this iReport
  • Not vetted for CNN

  • Click to view chasefrx's profile
    Posted January 20, 2014 by
    chasefrx

    More from chasefrx

    JPMorgan profit hit by Madoff

     

    JPMorgan Chase & Co posted a 7.3 percent decline in quarterly profit on Tuesday, as legal woes and weak demand for investment banking services capped off a tough year for Chief Executive Jamie Dimon.

     

    The largest U.S. bank had $1.1 billion of legal expenses in the fourth quarter, about $850 million of which was linked to a recent settlement for failing to report its suspicions of fraud at its client Bernard Madoff's fund.

     

    The bank agreed to some $20 billion of legal settlements in 2013 - almost equal to a typical year's profit - which covered everything from mortgages it packaged into bonds before the financial crisis, to bad derivatives trades it made in 2012.

     

    Dimon said some investigations into JPMorgan are just beginning, implying that legal issues are likely to dog the bank for some time, even if on a smaller scale.

     

    Legal headaches aside, the bank faces headwinds in businesses ranging from debt underwriting to advising companies on mergers. Rising bond yields are cutting into demand for issuing debt, and new rules designed to make the financial system safer are also cutting into trading volumes.

     

    Investment banking fee revenue dropped 3 percent to $1.67 billion, and stock and bond trading revenue combined was unchanged before accounting adjustments.

     

    Shares of JPMorgan were up 0.3 percent at $57.86 in afternoon trading on the New York Stock Exchange.

     

     

    Related Article: JP Chase Franklin International Branch

    What do you think of this story?

    Select one of the options below. Your feedback will help tell CNN producers what to do with this iReport. If you'd like, you can explain your choice in the comments below.
    Be and editor! Choose an option below:
      Awesome! Put this on TV! Almost! Needs work. This submission violates iReport's community guidelines.

    Comments

    Log in to comment

    iReport welcomes a lively discussion, so comments on iReports are not pre-screened before they post. See the iReport community guidelines for details about content that is not welcome on iReport.

    Add your Story Add your Story