Boston, MA 06\/13\/2014 (wallstreetpr) \u2013 JPMorgan Chase & Co.\u2019s (NYSE:JPM) <\/b>Marianne Lake, who is the chief financial officer of the biggest U.S. investment bank, said on June 11, that the bank may have to cut some jobs and reduce compensation if the revenue from trading fails to rebound from existing levels. Lake said that the bank can absorb the fall in revenue in the short-term, but in the long-term it would not be feasible enough to continue, leading to salary reduction and job cuts.<\/p>\n
Reason Behind Job Cuts:<\/b><\/p>\n
Last month, JP Morgan had indicated that trading activity in case of equities & fixed income would see a 20% drop in the second quarter compared to a year earlier, because of reduced volatility across various asset classes.<\/p>\n
JPMorgan Chase & Co.\u2019s (NYSE:JPM) total market share in the FICC segment (fixed income, commodities and currencies) reduced to 15.4% for the first quarter of 2014, compared to a full year 2013 market share of 18.6%.<\/p>\n
Morgan Stanley (NYSE:MS)<\/b>, has also recently cut some jobs in its interest rate trading and currency business due to continuing slowdown in the respective units, whereas, Credit Suisse Group AG (NYSE:CS)<\/strong>, is looking to sell its stakes in an electronic interest rate trading unit.<\/p>\n JP Morgan Claim Payment Speeds Up The Process:<\/b><\/p>\n In yet another development, the claim amount of $13 billion agreed to be paid by JPMorgan Chase & Co.\u2019s (NYSE:JPM), for violation of laws with respect to mortgage loans which were a part of the financial crisis, is being used by the government to accelerate the pace of settlements with other mortgage lenders like Bank of America Corp. (NYSE:BAC)<\/b> and Citigroup Inc. (NYSE:C)<\/b><\/p>\n Various Attorney\u2019s offices in the U.S., that specialize in probing the toxic loans given by banks in the form of mortgage-backed securities will be appointing new civil prosecutors, using the funds received by the government from the settlement claim.<\/p>\n As the settlement amount goes to the U.S. Treasury, the U.S. Justice Department can keep 3% of the claim amount, to be given to other federal agencies for use.<\/p>\n","protected":false},"excerpt":{"rendered":" Boston, MA 06\/13\/2014 (wallstreetpr) \u2013 JPMorgan Chase & Co.\u2019s (NYSE:JPM) Marianne Lake, who is the chief financial officer of the biggest U.S. investment bank, said […]<\/p>\n","protected":false},"author":10,"featured_media":14728,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3132,1654,7279,7278,7277,7276,3474,1877,1010,1168,603,1431],"stock_ticker":[],"class_list":["post-25685","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-bank-of-america-corp","tag-bank-of-america-corp-nysebac","tag-credit-suisse-group-ag","tag-credit-suisse-group-ag-nysecs","tag-jpmorgan-chase-co-s","tag-jpmorgan-chase-co-s-nysejpm","tag-morgan-stanley","tag-morgan-stanley-nysems","tag-nysebac","tag-nysecs","tag-nysejpm","tag-nysems","entry"],"acf":[],"yoast_head":"\n