ETF News

UPDATE 1-JPMorgan warns on costs related to US regulation

* JPMorgan not yet calculated costs of British bonus tax

* BofA sees $465 mln in charges from British bonus tax

NEW YORK, May 10 (Reuters) - U.S. financial regulation changes could limit JPMorgan Chase & Co's JPM.N business and increase costs, the bank warned in a quarterly filing with regulators on Monday.

The New York-based bank also cautioned that a further pickup in unemployment and a drop in U.S. house prices remains possible, and this could hurt JPMorgan’s large consumer lending businesses, according to the filing.

U.S. lawmakers are working on a broad overhaul of financial regulation aimed at preventing a repeat of the massive taxpayer bailouts of Wall Street in 2008.

JPMorgan, the second-largest U.S. bank, expects a charge of about $500 million to $750 million as a result of changes to rules on credit cards, according to its filing with the U.S. Securities and Exchange Commission.

The 2010 net-interest income of its residential real estate portfolio may fall by more than $1 billion from its 2009 level, according to the filing, as a result of charge-offs of bad loans and because the bank is writing fewer new mortgages than in previous years.

Separately, the bank said it has not yet determined how much it will have to pay as a result of a British tax on bankers’ bonuses that became law last month. JPMorgan executives have previously said this will be a material second-quarter item.

Bank of America Corp BAC.N, the largest U.S. bank, expects $465 million in compensation and benefits charges related to the tax on its British bonus payments, according to its quarterly filing on Friday. [ID:nN07189524]

JPMorgan Chief Executive Jamie Dimon in December called British Finance Minster Alistair Darling to say Britain’s tax on bankers’ bonuses punishes the bank unfairly, a person close to the bank said then. [ID:nN29131590] (Reporting by Elinor Comlay; Editing by Tim Dobbyn)