JP Morgan reports losses for the first time .
Provision for legal costs up to $ 9.2 billion has made the U.S. banking giant losses in the third quarter, the first time since 2004.
U.S. banking giant JPMorgan today announced first quarter loss under CEO Jamie Dimon, mainly due to the cost of the legal reserve. Accordingly, the last quarter, JPMorgan $ 380 million hole. In the same period last year, to $ 5.7 billion interest them. The last time the bank reported losses second quarter of 2004, under CEO William Harrison.
“Only in the past few weeks, the environment has become very volatile. Everything changes constantly and we must face the huge costs, far exceeding initial estimates,” Chief Financial Officer of JPMorgan – Marianne Lake said on Bloomberg.
JPMorgan’s Dimon helped achieve record profits over the last three years. However, he is not the bank faced a series of investigations, after trading scandal “London Whale” damages of $ 6.2 billion last year. Provision for legal costs before tax of the company is $ 9.2 billion, up dozens of times over the 684 million in the same period last year. Meanwhile, the company’s revenue fell 8%.
“This is very sad for us,” Dimon said. Since 1/2010, JPMorgan paid $ 8 billion in legal fees and to spend $ 20 billion for its own operations. These numbers will continue to rise in the next year or two. “We wanted to reduce these fluctuations., But this is very difficult,” he said.
JPMorgan shares fell only slightly 0.02% in the previous trading session in the U.S.. JPMorgan recently involved in a series of lawsuits to scale up to billions of dollars. They just accept the $ 920 million fine for scandal “London Whale”.
Banks also are U.S. government sued for manipulating the commodities market and selling securities for its poor quality mortgages before the crisis. According to a source close they are negotiating $ 11 billion in fines to the government to settle this.