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Entries in JP Morgan Chase (4)

Tuesday
Feb262013

Big Paydays for JP Morgan Employees, Despite Job Cuts

STAN HONDA/AFP/Getty Images(NEW YORK) -- Another big bank announced job cuts Tuesday, but for those still employed on Wall Street it remains lucrative.

JPMorgan Chase said it would cut thousands of jobs by the end of the year in an effort to decrease expenses by at least $1 billion annually.  

For those who remain employed on Wall Street, the New York State comptroller said bonuses should rise about eight percent this year.  That's on top of the average salary of $362,000.  

High finance shed more than 28,000 jobs during the financial crisis, and only a fraction have returned.

The news about the rising bonuses may surprise those who remember the outcry over the industry's compensation during the financial crisis, but the banks say they need to pay big to retain talent.  Their paychecks are still a big part of New York's economy.

Copyright 2013 ABC News Radio

Wednesday
Aug152012

JP Morgan Chase CEO Jamie Dimon: ‘It’s a Free F***ing Country’

Scott Eells/Bloomberg via Getty Images(NEW YORK) -- Jamie Dimon, the embattled CEO of JP Morgan Chase, defends the banking industry and capitalism in general with some salty language in a New York Magazine article out today.

“I’m an outspoken defender of the truth,” Dimon told reporter Jessica Pressler. “Everyone is afraid of retaliation and retribution. We recently had an event with a hundred small bankers here, and 85 percent of them said they can’t challenge the regulation because of the potential retribution. That’s a terrible thing. Okay? This is not the Soviet Union. This is the United States of America. That’s what I remember. Guess what? It’s a free. F***ing. Country.”

Dimon, who testified before the House Financial Services Committee in June, after a more than $5.8 billion trading loss by his bank, went on the defensive in the interview, one of the few he has given since the trading scandal broke.

“There are huge benefits to size,” Dimon told New York Magazine. “We bank Caterpillar in like 40 countries. We can do a $20 billion bridge loan overnight for a company that’s about to do a major acquisition. Size lets us build a $500 million data center that speeds up transactions and invest billions of dollars in products like ATMs and apps that allow your iPhone to deposit checks. We move $2 trillion a day, and you can see it by account, by company. These aren’t, like, little things. And they accrue to the customer. That’s what capitalism is.”

Dimon said businesses are under attack. “The whole world has become crazy. Businesses get attacked every time they do something,” Dimon continued.

The CEO, who received a $23 million compensation package from Chase, discussed how “honorable” bankers are.

“Everyone is talking about the culture, the culture, and all that, and it’s just not true,” Dimon said. “Most bankers are decent, honorable people. We’re wrapped up in all this crap right now. We made a mistake. We’re sorry. It doesn’t detract from all the good things we’ve done. I am not responsible for the financial crisis. I hate to tell you."

"We were a port of safety in the storm. I find it unbelievable that that is the general theme—that you have to walk in a room and act like you are responsible for things you are not responsible for,” he continued.

Copyright 2012 ABC News Radio

Wednesday
Jul112012

A Chase Customer with Alzheimer's Accuses Bank of Stealing Over $100,000

Chris Hondros/Getty Images(BATON ROUGE, La.) -- A Louisiana man with Alzheimer's disease has filed a lawsuit against JPMorgan Chase, claiming an employee stole over $100,000 from his accounts and the bank refuses to give it back.

Herman Lafayette, 84, and his granddaughter, Laadonis Williams, who is his curator, filed suit in late June in the U.S. District Court in the Eastern District of Louisiana.

The suit claims a Chase bank employee at a branch in Jefferson Parish "took advantage" of the fact that Lafayette was diagnosed with Alzheimer's in 2008. He was interdicted, or legally declared that he could not attend to his personal affairs, in March 2010, when his granddaughter was appointed his curator. The two have lived together in Baton Rouge for the past three years.

The suit states that the family discovered that over $100,000 was missing around July 2011, which included over $300 withdrawn per day from an ATM machine in Jefferson Parish, La. over the course of a year and $23,369.19 was withdrawn through another account.

"A significant amount of the money stolen from Mr. Lafayette's account by the bank employee were monthly payments from the United States Social Security Administration, which at all relevant times were being direct deposited in these accounts," the suit states.

The other source of Lafayette's money had been his retirement as a forklift driver and maintenance worker in New Orleans and funds from the loss of his home and property after Hurricane Katrina.

The lawsuit is suing for negligence, breach of contract and breach of duty, fraud, unjust enrichment, among other actions and seeks damages for complications and punitive damages.

After first being suspicious of family members, Williams, 25, said the bank told her that an employee stole the money. But Williams does not know if one or more employees were allegedly involved in closing up accounts and assigning themselves to a debit card attached to Lafayette's account.

Karen Hayes Green, the attorney for Williams and Lafayette, said she requested information in a letter from the bank in October 2011 to determine if a formal investigation had begun. But she said she was rejected for privacy reasons.

"[Lafayette] might have known his name but we don't know that," Hayes Green said. "And we can't get this information at this time. The bank knows this information."

The suit states that the bank "provided little or no information," though it had assigned an investigator to look into the missing funds.

When Williams went to the bank to inquire about the investigation, the investigator allegedly stated, "Mr. Lafayette still alive?" the suit states.

A spokesman for Chase said the company just received notice of the lawsuit and declined to comment about its allegations.

"We take these matters very seriously and will investigate," he said in a company statement.

Williams and her nine brothers and sisters are originally from New Orleans but separately moved to various locations after Hurricane Katrina struck in August 2005.

A teacher's assistant who works with children in special education, Williams said she decided to live with her grandfather after her family left him in a nursing home after the hurricane. Her mother, who died when she was five years old, was Lafayette's only biological child. Now her grandfather is her only link to her late mother.

"All I know about my mom's side of the family is what he talks about," Williams said.

When her grandfather noticed the money was initially missing, he accused members of the family of stealing it. Then family members began accusing each other.

Williams said one reason why the rest of her family does not spend time with her grandfather is that "he still brings it up."

"He still says, 'They stole all my money.' He's 84-years old with Alzheimer's and dementia," Williams said. "After all the dirt and accusing, nobody wanted to be bothered with him."

But after pressing the local bank, Williams was told it was an "inside job."

"I'm positive it's someone from the company," she said.

Williams said the missing money has "ripped our family apart" and now "something has to be done about it."

"Everyone was pointing fingers," she said. "He pointed fingers at people when, all the time, it was inside the bank."

Green has bank statements that indicate the ATM transactions and bank transfers and now she hopes to recover the money that was stolen from her client.

"If you can't trust your money with the bank or a bank employee who can you trust it with?" Green asked.

Copyright 2012 ABC News Radio

Monday
Jan232012

First 3 Big Banks to Report Compensation Show Drop

STAN HONDA/AFP/Getty Images(NEW YORK) -- The top executives at three large investment banks received stock award pay cuts of 15 to 25 percent after their shares took a beating in 2011. But their pay packages are still eye-popping for an industry that required a massive government bailout a few years ago.

JPMorgan Chase, whose profits filled 23 percent in the fourth quarter, saw stock bonuses fall for its top executives, though the pay of CEO Jamie Dimon remained about the same.

The top 13 executives at JPMorgan Chase had a 15-percent cut in stock awarded, which is only a portion of executive compensation. Those executives received $60.9 million in restricted shares plus stock options, Bloomberg reported. Dimon's pay package was about $23 million.

In November, Dimon said he understood the frustration of the Occupy Wall Street protesters, who had camped outside where he was giving a speech. But he said large corporations contribute to the U.S. economy because they "pay their people more, are more diverse, with health benefits. It isn't like they're the bad actors here."

Figures from Equilar, an executive compensation data firm, show the executive stock awards at JPMorgan Chase, Morgan Stanley and Citigroup were lower this year. Goldman Sachs has yet to file compensation figures.

The total compensation of Morgan Stanley's CEO James Gorman fell 25 percent from 2010 to about $10.5 million, Dow Jones reported.

Morgan Stanley reported a loss of $275 million on Thursday, the bank's first quarterly loss since early 2009. The company's shares fell 44 percent last year, leading to a drop in pay for senior investment bankers and traders by 20 to 30 percent, Bloomberg reported.

Citigroup's full-year profit increased 6.4 percent in 2011, the second year the company was profitable under CEO Vikram Pandit. Last year, when the bank's shares fell 44 percent, Pandit had a base salary of $1.75 million and a retention plan valued at more than $40 million, Bloomberg BusinessWeek reported. In July, he received the remaining $80 million of the $165 million from Citigroup's buyout in 2007 of his hedge fund, Old Lane Partners LP.

In December, Pandit announced Citigroup will lay off 4,500 employees, about 1.5 percent of its 267,000 employees, for which the bank took a $400 million charge in the fourth quarter.

Overall compensation for employees of the biggest Wall Street banks were predicted to sink 27 to 30 percent from a year ago to the lowest level since the 2008 financial crisis, executive consulting firm Options Group reported.

The group predicted the average global compensation would decline 33 percent in the investment banking sectors of fixed income, currencies and commodities, a 29-percent drop in the equities sector and a 14-percent fall in investment banking. According to a report released in late November the only sectors that were forecasted to have increases in the single digits were private wealth management and electronic trading, the report stated.

Bankers' counterparts in East Asia took a hit, but not as deep as in the U.S. and Europe. Options Group forecasted compensation to decline 18 percent in Japan. In Asian countries other than Japan, compensation was forecasted to decline 19 percent.

Total equity grants value of three highest paid executives at JPMorgan Chase, Morgan Stanley and Citigroup since Jan. 1, compared with a year ago:

JPMorgan Chase

1. James Dimon, Chairman & CEO: $20.4 million

Previous: $17.0 million

2. James Staley, Managing Director: $11.4 million

Previous: $14.5 million

3. Mary Erdoes, Managing Director: $10.5 million

Previous: $13.3 million

Morgan Stanley

1. James Gorman, CEO: $5.1 million

Previous: $7.4 million

2. Gregory Fleming, President, Asset Management: $3.4 million

Previous: $4.0 million

3. Paul Taubman, Co-President of International Securities: $3.4 million

Previous: $5.6 million

Citigroup

1. Vikram Pandit, CEO: $3.7 million

Previous: 2011-2012 incentive award yet to be determined

2. John Havens, President & COO: $3.5 million

Previous: $4.8 million

3. Manuel Media-Mora, CEO, Global Consumer Banking: $2.6 million

Previous: $4.0 million

Copyright 2012 ABC News Radio







ABC News Radio