Reuters - Video

EDITION: U.S. | U.K. | IN

Finance Videos

Legal woes cost J.P. Morgan

Tuesday, Jan 14, 2014 - 00:58

Jan. 14 - Huge legal settlements cut deeply into J.P. Morgan's earnings. One analyst says settling its legal woes will push its stock higher. Fred Katayama reports.

▲ Hide Transcript

View Transcript

***PLEASE NOTE, THE VIDEO CONTAINS 4X3 FOOTAGE*** Mammoth legal settlements took a big bite out of J.P. Morgan Chase's quarterly earnings. In just the last three months, Morgan paid out $15 billion to settle with the feds over former client Bernie Madoff's Ponzi scheme and its sale of questionable mortgage securities. CEO Jamie Dimon said, "It was in the best interests of our company and shareholders for us to accept responsibility, resolve these issues, and move forward." Also denting earnings: investment banking profit plunged by more than half. So too did mortgage originations and applications, as rising interest rates dampened demand for loans. J.P. Morgan's stock, which trades at lower valuation than its rivals, moved higher in early trade. Buckingham Research's analyst James Mitchell says he expects the shares "to play 'catch up' with peers over the next 6 to 12 months as the company continues to make progress on putting its legal woes behind it."

Legal woes cost J.P. Morgan

Tuesday, Jan 14, 2014 - 00:58

Top News »

Money »

Moving Pictures »