Billions of dollars of legal costs related to endless findings of wrongdoing cost JPMorgan Chase only 27 cents per share in the fourth quarter. The company's profits fell to a mere $5.28 billion in the past three months. The bank is no doubt severely chastened by the serious consequences for its misdeeds.
JPMorgan has agreed to pay a settlement of $2.6 billion for charges related to the bank's failure to stop Bernie Madoff's Ponzi scheme. In the past two years, the bank has paid close to $30 billion in legal settlements. That number is smaller than JPMorgan's profits, so Jamie Dimon will never get fired.
In the past few months, the New York Times has run a series of stories revealing the business practices of JP Morgan in China, where the bank hired the children of the country's elite to get business from the Chinese Government. How far did JP Morgan go in pursuing these deals? Federal authorities have obtained documents that show the bank tracking the hirings to potential business deals.
Six weeks after CNBC's Maria Bartiromo scoffed at Alex Pareene for attempting to discuss JPMorgan's shady dealings in China, the New York Times again reports that U.S. officials are scrutinizing JPMorgan to ascertain "whether the bank swapped contracts and jobs for business deals with state-owned Chinese companies."