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JP Morgan Chase records 16% drop in profits after year of record fines
10:05am Thursday 16th January 2014 in News
BOURNEMOUTH’S biggest private employer, JP Morgan Chase, has posted a 16% drop in profits after a year of record fines.
The group revealed net income fell to 17.9bn US dollars (£10.9bn) in 2013.
JP Morgan took another 1.1bn dollar (£670m) charge in ‘legal expenses’ over the fourth quarter to cover 2.6bn dollars (£1.6bn) in settlements for its failure to alert US authorities to the ponzi scheme run by Bernard Madoff.
The group was also hit with a record 13bn dollar (£7.9bn) penalty last year to settle claims it missold mortgage securities in the run up to the financial crisis, while it forked out fines of 920m US dollars (£560m) to US and UK regulators for the London Whale affair.
The scandal spread shockwaves throughout financial markets after a series of large trades taken by staff in its London-based investment office triggered losses for the group of 6.2bn dollars (£3.8bn) in 2012.
Pay and bonuses across the firm rose one per cent to 30.8bn dollars (£18.7bn) over 2013, although workers in its investment bank saw a four per cent drop to 10.8bn dollars (£6.6bn).
Jamie Dimon, pictured, chairman and chief executive of JP Morgan, said: “We are pleased to have made progress on our control, regulatory and litigation agendas.
“It was in the best interests of our company and shareholders for us to resolve these issues and move forward.”
JP Morgan employs around 5,000 people at its Chaseside operation in Bournemouth.
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