Boston, MA 06/12/2014 (wallstreetpr) – The Chief Financial Officer of JPMorgan Chase & Co. (NYSE:JPM), Marianne Lake said that the company will have to slash jobs as well as bring down the compensation in order to rebound in case the trading revenues fall. The CFO said that with the results of the company holding at present levels, it was most likely that the compensation will fall down and in the long term, the question of slashing jobs will also become apt. The competitors of the bank such as Morgan Stanley have already reduced its staff.
JPMorgan’s Warning of falling trading revenues to the investors
In May 2014, JPMorgan Chase & Co. (NYSE:JPM) had already warned its investors that there would probably be a sink of around 20% in comparison to 2013 in terms of second-quarter fixed-income and equities trading. This was happening because of low volatility across asset classes. At the same time, during the investors ‘conference, which took place recently, the CFO of the company said that the forecast was that the slowdown was appearing to be cyclical and not a permanent shift.
Statement from the CFO
Marianne Lake, the CFO of JPMorgan Chase & Co. (NYSE:JPM) said that everyone should expect to see the cyclical headwinds abate and also get replaced with the tailwinds, which include higher interest rats and global economic growth. She added that the size of the bank enabled it to withstand the lulls of the market without having a need to overreact. However, she said, there was a possibility of job cuts which would be needed over the long term.
She explained that the reductions will be needed in line with the response to the market evolution. It is expected that the deposits would drop down by around $100 billion, after Federal Reserve reverses the steps which were taken by it to prop up banks as well as the markets after financial crisis. At the same time, she said, the increasing rates of interest would draw the deposits as the consumers move towards money-market funds.
