real-time news and commentary for investors
Tuesday, Sep 17
JPMorgan ramps up compliance spending
- JPMorgan (JPM +0.2%) has increased spending on control efforts by about $1B as it hires 3K employees this year to handle legal and compliance issues, says Jamie Dimon in a memo to employees. "Our control agenda is priority #1."
- The $700M-$800M in fines the bank is paying over the London Whale issue is little more than a flesh wound, says FBR's Paul Miller, reminding the bank generates pretax income in the $30B-$40B range. While the issue is a "giant headache for Jamie" and a few big lawyers, it's not affecting the operations of the bank, says Miller.
- Miller's concern about JPMorgan and the rest of the big banks is the seemingly never-ending stream of legal issues dating back to the financial crisis. The banks have been paying for this for five years, he says, and it looks like they're going to have to pay for a couple of more. It's the cost of doing business.