Dear JPMorgan Workers: No Raise For You

Tyler Durden's picture

There was a time in the financial industry when the many wouldn't suffer for the sins of the few (although taxpayers were certainly excluded from this maxim). Well, for the "many" who work at JPMorgan, that is no longer the case because as Reuters reports, JPM employees can forget getting a pay raise in 2013 (although with sub-2% annual inflation as calculated by the BLS one wonders just why anyone should be getting a raise: just hand out an edible iPad or two and the COLA is fixed). The reason for the lack of a raise: "the bank's massive legal bills" - bills which incidentally were incurred when a select few JPM employees cheated and defrauded the system - illegally - in order to procure massive year end bonuses, most if not all of which were not clawed back, and subsequently were caught (one can only imagine how many of the "few" are still at the bank, doing manipulation and defrauding as usual. And now it is everyone else's turn to pay because the bank lacked the most elementary supervision of its criminal employees (long since fired) and raked up roughly $20 billion in litigation and legal settlement charges.

From Reuters:

Overall compensation per employee was roughly flat with 2012, just as managers had warned employees in November, said the person who was not authorized to speak publicly. While some individuals are getting more money, their payouts have come at the expense of others.

 

Pay increases have been muted across much of the banking sector in the aftermath of the financial crisis, but 2013 was especially tough at JPMorgan as profits declined because of the cost to settle government and private claims against the bank.

 

Company-wide compensation expense was $30.8 billion for the year, up a fraction of one percent from 2012. At the same time, JPMorgan reduced headcount by more than 7,500 people to 251,196, with the result that compensation expense per employee rose nearly 4 percent to $122,653, according to data disclosed by the company last week.

 

...

 

In the company's Corporate & Investment Bank, where its deal-makers and traders work, total compensation expense declined 4 percent and employment remained flat. Average compensation expense per employee in the division was $207,368, down about $10,000 from a year earlier.

And of course, for the workers in the bank's mortgage origination group - you know, the one product that banks used to rely on most of all before the bank as glorified hedge fund concept came along - the news in 2013 was worse: instead of getting any comp in 2014 they simply got a pink slip.

Most of JPMorgan' job cuts were from positions handling mortgage loans. Some tellers in bank branches were also replaced with financial advisors selling investment products.

That said, this being JPMorgan, hardly many a tear will be shed. As for our advice to JPM's workers, please voice your grievances to Jamie Dimon: after all there is a reason why he is "richer than of you."

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
walküre's picture

If the execs didn't cheat, steal, lie and commit fraud, the "workers" wouldn't have a job to begin with.

DoChenRollingBearing's picture

I can see it now, lots & lots & lots & lots of ZH responses like:

"Aww, too friggin' bad!"

Winston Churchill's picture

Tough titty.

Cry me a river, and I will gladly drown you in it.

aint no fortunate son's picture

I wonder what Jamie's bonus was for 2013 vs prior years, and insider stock option awards etc

max2205's picture

Welcome to JPM, can I take your order.

philipat's picture

And don't forget the Shareholders who are the ones who actually pay the costs of litigation which are "Expensed", thereby reducing profits and dividends.

So it is the employees, the shareholders, customers and society that suffer whilst a small group commit serial fruad to generate massive bonuses which will never be clawed back and in the full knowledge that they will never be prosecuted. Which is, of course, why it will NOT stop.

walküre's picture

Not sure what you mean. Are you suggesting that anything JPM, GS, et al are doing is actually legitimate?

The "investors" or "shareholders" will be lucky if the next People's Regime is letting them go free because with their money, they facilitated the fraud in a way.

Tricky and slippery slope for all involved. Heads will need to roll. I promise the executions will be swift and the suffering will be barely noticeable. Let's say the execs get eliminted, the others will work for free and serving the needy and the shareholders will lose their wealth.

New cards for everyone, new chances, new opportunities. New laws against usury and any form of rehypoticiation or financial gambling with OPM.

TeamDepends's picture

Yeah, we'll have a paper burger with fraud sauce and a side of virtual fries.  And don't skimp on the physical napkins this time!

LawsofPhysics's picture

Lying cheating and stealing?  Sounds like the execs should be in prison.

But I digress, when when the last time those who exhibited bad behavior actually suffered some real consequences?

The irony here is that I have jury duty in two weeks.  Someone needs to start a pool on whether or not I actually get selected.  Could be a close one.

Winston Churchill's picture

I always tell the Judge about the great tradition of jury

nullification in the USA.

For some unknown reason , I never make it past the selection

process.

LawsofPhysics's picture

I was planning on working that into the conversation, but thanks Winston.

El Vaquero's picture

I'd personally keep my mouth shut on that, especially if it was a victimless crime.  Then, I'd nullify like a motherfucker if it was something that I felt should be legal. 

LawsofPhysics's picture

Oddly enough, I was already excused from a case involving financial fraud.  I pointed out the legal precidence showing that it was pretty much impossible to confict anyone, including the CEO or CFO, on such charges.

I think this is a murder case.  I know the cops that collected the evidence and they gave me a big head's up.

Yes, I could be fucked.

Winston Churchill's picture

Back then I could not afford the time away from my business.

My name obviously got marked on a list somewhere ,because I've

had no jury summons for over five years now ,before it was every two

years, like clockwork.

slightlyskeptical's picture

Ditto here. Been about 10 years. Of course, last time I blew the Jury pool up because the stupid attorneys let way too many facts of the case emerge in the jury selection. They asked about prejuidice and I explain that I was already prejudiced as I spelled out the correct verdict in the case. I was immediately free(asked) to leave. Always wondered what went on after I left. Serves them right for holding us in there for 6+ hours over a stupid soft tissue damage lawsuit. Soft tissue damage can't be proved but definitely exist so in all fairness you have to rule in favor of anyone who has substantial reason to claim it.

Sorry for boring you all but it was a sweet memory.

BanksterSlayer's picture

Dear Employees: Any questions?

#AskJPM

Sudden Debt's picture

they'll crash the gold and silver market tomorrow to flowerpower their bonus for sure

TeamDepends's picture

Lawyer first, you second.

LawsofPhysics's picture

LMFAO!!!  Don't worry, I am sure that they will "get buy" just fine.

Fuck em.

Joebloinvestor's picture

I really don't feel sorry for any bank employee not getting a bonus or a raise.

 

Maybe they can make up for the loss with whistleblower awards.

LawsofPhysics's picture

"Maybe they can make up for the loss with whistleblower awards."- always good to be optimistic.

Joebloinvestor's picture

Seriously, if you worked for a bank and was privileged to info that would net you a nest egg, wouldn't you think about blowing the whistle given the situation?

They do nothing but blame low level people, so low level people should know where all the skeletons are.

The big guys get their bonuses and perks.

Hedgetard55's picture

Jamie's asshole minions get fucked, big time, while Jamie lives large.

LawsofPhysics's picture

It' only one reason (of many) that explains why he is richer than them.

LetThemEatRand's picture

The real reason -- lobbyist bills are through the roof.   Takes a lot of bribe money to keep cuff links out of the clink.

LawsofPhysics's picture

Bingo.  One has to wonder what happens when the printing presses shut off?  But then again one should always be fucking optimistic too.

johnconnor's picture

the average compensation per employee at JPMorgan chase is $122,653 for real!? including all the tellers and so forth?

LawsofPhysics's picture

JPM Tellers?  WTF?  Please, anyone who has interacted with such a thing, please reply, T-rex, you go first.

Skateboarder's picture

I thnk he's talking about Chase. They're on the same payroll heirarchy.

LawsofPhysics's picture

Okay fine, Same fucking question, insert "Chase' in place of JPM.

johnconnor's picture

I am asking a serious question: JPM is supposed to be all the conglomerate of JP Morgan, Chase, Bank One, Washington Mutual, Bear Stearns, etc... so if you put together that army of people working for the whole thing, you get an average compensation of $122K plus benefits per year per employee?

pitz's picture

Yawn, wake me up when these "workers" have returned to their intrinsic value, which certainly is less than the average wage of US workers. 

Robinhood's picture

And that is why I am richer than you.

Sincerely, 

Your shepard Jamie

silverserfer's picture

next year they'll all go to jail and serve 48 hours in exchange for Jamie's 100  year sentence. 

bankonzhongguo's picture

Here is an idea.

How about every JPM contractor, consultant, lobbyist, security detail, lawyer, director, and employee (from Jaime on down to the janitor), how about each and every one of this profiting, diseased debt slavers liquidate their net worth to vacate our debt bondage and in turn each spend a month in jail for their collective crimes against humanity.  After all of that, JPM assets (your debt) is liquidated and every building burned down.

Anyone still squawking about this is then put at the bottom of the ocean or shot into the middle of the Sun.  This is after their entire families are sterilized.

After than, we move over to Wells Fargo, GS, BOA and the like.  Basically any shareholder of the Fed.

Praise Jesus.

No Justice. No Peace.

 

SweetDoug's picture

'

'

'

Oh… One of those bloody bleeding heart libtards that want go soft on crime, eh?!

 

•J–<
V-V

artless's picture

I'm good with that. Same for the Morgan Stanley folks. The Goldman Sack.

Dre4dwolf's picture

Just get rid of banks and money already, archaic systems of a past generation, like governments.

Most governments nowadays are obsolete going through the last motions in their death spiral, same with banks, in 10 years there wont be "banking" there will only be free market money backed by technology.

grunk's picture

You didn't whistleblow that.

Yet.

Dr. Engali's picture

Damn it! I was really counting on them trickling down on me this year.

Occams_Chainsaw's picture

Let's stop with the trickle down arguments which have become quite vapid.  Let's instead talk about knob-slobbing payoff economics which are really the way things work.

Bugsquasher's picture

Alternative title: "How To Make a Whistleblower!"

Fíréan's picture

"JPM employees can forget getting a pay raise in 2013"

 

someone please tell the author it's 2014 now,  2013 has been and gone.

SweetDoug's picture

'

'

'

Oh…

 

Ha! Ha!

 

•J•
V-V

tvdog's picture

Well, as long as there's a good reason...

williambanzai7's picture

They can go sell bad apples on the street corners of shyster city.