Outlook: Dimon in the rough between investors and regulators
Outlook The gloss long ago came off Jamie Dimon, the chief executive of JPMorgan who steered a nimble course through the financial crisis only to get repeatedly tripped up in its aftermath.
If yesterday's quarterly results are anything to go by he's still stumbling, with yet more legal woes wrecking his numbers. Among the hits for the fourth quarter was part of the $2.6bn payment to settle government and private claims related to the work JPMorgan did for fraudster Bernie Madoff.
It's part of a $20bn (£12bn) haul that it has had to pay to watchdogs on both sides of the Atlantic for a range of violations. The most high profile of these was the so-called "London Whale" trader whose activities lost the bank $6bn. But it wasn't the most expensive – that was the $13bn hit to cover claims that it mis-sold mortgage linked securities.
JPMorgan still turned a profit for the year – nearly $18bn all told. It still rewarded its investment bankers handsomely with pay averaging £126,000 (down 4 per cent, but they won't need to shop in Aldi). And it still paid Mr Dimon a king's ransom.
But you do wonder how long it will be before investors start to get restive.
Twenty billion is not the sort of number that can simply be dismissed as a one-off, and the bank isn't yet out of the woods. Analysts are hoping that JPMorgan's legal costs will ease a bit. But there are still several investigations pending. You can see how it got here: by pressurising/incentivising staff to do whatever it takes to keep the short term numbers up.
Until recently JPMorgan's investors have been complicit in this, as it has delivered, time and again. It's only now that the cost of that is becoming clear. Can Mr Dimon chart a new course for the bank that keeps the regulators at bay while keeping his investors happy? Is that actually possible? That's the question both parties have to grapple with.
- 1 Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
- 2 Rarest Beanie Baby of them all could be sold for £62,500 on eBay
- 3 Professional big game hunter Ian Gibson crushed to death by elephant during hunt
- 4 Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
- 5 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
Yemen crisis: Meet the child soldiers who have forsaken books for Kalashnikovs
Alan Rickman admits editing 'terrible' script with friends in Pizza Hut behind backs of writers on Robin Hood: Prince of Thieves
Rarest Beanie Baby of them all could be sold for £62,500 on eBay
Professional big game hunter Ian Gibson crushed to death by elephant during hunt
Farmer told to tear down mock-Tudor castle after hiding construction behind hay bales
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...
£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...
£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...