Legal News

Quarterly Earnings Report: JP Morgan Sees $380 Million Loss due to Legal Costs
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

Financial giant JPMorgan Chase reported losses this quarter because of high legal costs. This was unexpected, as JPMorgan’s core business has produced positive results and strong profits this quarter. The country’s largest bank by assets made $23.12 billion in revenues this quarter, yet reported to investors a $380 million dollar loss. This reportedly was “due to a $9.15 billion dollar charge for legal expenses following a series of high-profile regulatory problems,” according to

When the earnings are adjusted for extraordinary items, earnings divided by the number of issued shares leaves $1.42 cents per share, which still remains 21 cents more than the street expected. In otherwords, adjusting for this particular once off type of loss, the company is doing very well, and has beat market expectations. CEO Jamie Dimon commented, “The results demonstrated strong underlying performance across the businesses, but that the company’s overall results were marred by large legal expenses.”


Jamie Dimon continues to assure his large client base. He says that while oversight on the size and strength of the bank’s legal support team is constant, relative to the “escalating demands and penalties from multiple government agencies” his decision was practical in its assessment to have a stronger legal support base. The CEO finalizes by saying how he doesn’t always expect the company’s legal costs to be this high, or even to remain this high, yet for the moment he expects volatility there, although over time he expects JPMorgan’s legal costs to “abate and normalize over time.”

JPMorgan resolved a $920 million settlement regarding the “London Whale” fiasco, where a London portfolio manager was overexposed, over-leveraged and lost $6.2 billion as the credit derivatives held lost value. Other penalties incurred by the bank happened in July as JPMorgan agreed to resolve electricity market-manipulation charges with a $410 million dollar settlement.

Federal regulators continue in their oversight process as they probe and audit data from these cases. Currently the financial giant is in discussion with the DOJ over a possible settlement regarding the mortgage-backed securities that were sold before the housing market crash. That specific settlement could be at $11 billion or more.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

In spite of these legal issues that the investment firm is facing, its quarterly report on Friday showed that compared to last year, the firm made a profit of $5.71 billion on revenues of $25.15 billion. Investors and analysts are still bullish on the firm, noting its track record and performance in recent times.

Image Credit:  Business Week




USA-CA-Mountain View

Motivated attorney sought by established firm for litigation position. Candidate should have two or ...

Apply now

Associate Attorney

USA-CA-San Francisco

Adler & Colvin is a seventeen-attorney, nationally-known San Francisco firm that exclusively advises...

Apply now

Trusts and Estates Attorney (Sacramento)


Annual Salary: 110k-135k DOE base and potential bonuses Trust and Estates Attorney The Bu...

Apply now

Trademark Paralegal


MAVEN IP is looking for a detail-oriented full-time paralegal assistant with experience and kno...

Apply now




Search Now

Insurance Defense Litigation Attorney


Garland office of our client seeks insurance defense litigation attorney with 5-8 years of experienc...

Apply Now

Labor and Employment Associate Attorney

USA-LA-New Orleans

New Orleans office of a BCG Attorney Search Top Ranked Law Firm seeks labor and employment associate...

Apply Now

Associate Attorney

USA-CA-Walnut Creek

Walnut Creek office of a BCG Attorney Search Top Ranked Law Firm seeks associate attorney with 1-4 y...

Apply Now


To Top