JPMorgan Chase & Co, the biggest U.S. bank by assets, reported a 6.6% drop in quarterly profit as legal costs exceeded US$1 billion in the wake of government probes, leading Chief Executive Jamie Dimon to claim banks were “under assault.”
JPMorgan agreed in November to pay US$1 billion in penalties over its conduct in foreign exchange markets. Investigations into that and other areas of the bank’s business, including alleged manipulation of Libor interest rates, are continuing.
JP Morgan is sometimes called 'The House of Dimon' for the all encompassing presence of its CEO, Jamie Dimon. For years he has been unquestionably the most powerful banker in the United States, and as such, the de facto voice of Wall Street.
There’s a surprising degree of blogosphere acceptance of JP Morgan’s messaging on the shareholder vote today regarding whether to split the CEO and Chairman roles, that this result was a vote of confidence in his prowess as CEO.
Yet New York Magazine described the extent to which Dimon had to call in the big guns like Warren Buffett, Hank Paulson, and Michael Bloomberg to press his cause, and added:
JPMorgan Chase & Co., the biggest U.S. bank, plans to reduce headcount by as many as 19,000 people in its mortgage and community banking businesses through 2014 as Chief Executive Officer Jamie Dimon cuts expenses.
JPMorgan Chase chief executive Jamie Dimon will face shareholders' wrath Tuesday after admitting that the top US bank lost $2 billion in derivatives trading in just six weeks.A day after JPMorgan let its chief investment officer go in the wake of the huge loss and the bank's shares took another sharp fall on the stock market, Dimon will head to Tampa, Florida to answer to investors at the bank's annual meeting.