JPMorgan To Fire Thousands

Tyler Durden's picture

Following last year's realization that mortgage origination as a product line is effectively dead (which has forced such origination dependent banks as Wells Fargo to return to subprime lending in hopes of keeping the revenue stream alive, knowing full well how it all ends), and that only investors and "all cash" buyers are keeping the myth of the housing recovery alive on their shoulders, banks fired tens of thousands of workers in the mortgage business hoping to stem the bottom line bleeding from the collapse in revenues. It turns out that they didn't fire enough and/or that the housing market contraction was far worse than even the banks, in their most, pessimistic forecasts, had expected. Case in point: JPMorgan, which after firing 15,000 in its mortgage business, has just revealed it will fire thousands more.

From the FT:

Several thousand more cuts are planned, according to people familiar with the matter, and could be announced at JPMorgan’s annual investor day on Tuesday. They are part of a new efficiency drive at the largest US bank by assets that also encompasses staffing branches with fewer employees.


Profitability at JPMorgan remains stronger than at competitors such as Bank of America and Citigroup but the bank is looking to find new savings, partly because of technology that allows greater automation of clerical functions in branches and partly because of a plunge in demand for mortgage refinancings.


Rising interest rates have stifled demand, causing the biggest banks to cut tens of thousands of positions over the past two years. The additional cuts at JPMorgan are expected to number more than 2,000, evidence of the steep decline in demand even in the past 12 months.


The bank, which employs more than 250,000 people, is also looking to cut thousands of jobs in branches over time, though it expects to do so by attrition.


JPMorgan executives decided in the past 12 months to halt its branch-building programme, following a trend for banks to look online for future growth rather than to bricks and mortar.

We doubt many tears will be shed over the terminations, especially since JPM was the one bank holding out longer than most in hopes that things will finally change for the better and the bank's "fortress" balance sheet will be able to isolate the firm's workers. They didn't, and it didn't.

JPMorgan held out longer than rivals, filling in gaps in the market in Florida and California, in particular, before now joining the long list of banks to have scaled back their growth plans.


“It was awfully 20th century of them,” said Mike Mayo, analyst at CLSA Securities. “With such weak revenue growth – the worst in eight decades – banks need to find new ways to control expenses, which means finding other ways to streamline branches and other distribution. The last two years have seen the most branch closings in history.”

Yet while JPMorgan's terminations - merely a stepping stone to even more layoffs in the future - mean the unemployment rate will continue to drop as most of the newly laid off will simply drop out of the labor force entirely, the biggest loser will be Wells Fargo, whose primary revenue line was and is mortgage origination. Well, was.

We look forward to seeing just how the California bank, and largest mortgage originator in the US, will offset what is now clearly a secular collapse in mortgage demand as more and more Americans simply refuse to (or can't) take out mortgages to buy homes whose prices have become inaccessible to all but a very select (0.1%) few.

Comment viewing options

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

But Dimon's leadership is so excellent?

HyBrasilian's picture

They can get in line for the gold custodian job at the NY FED [now that theirs is all gone]

kaiserhoff's picture

What you fail to perceive, Tyler, is that nothing else is as important and Jamie's Hanukkah bonus,

or mabe that's his Bukakki bonus.  I forget.

Looney's picture

Dude, I wish the article read "JPMorgan To Fire EVERYfuckingONE"  ;-)


kaiserhoff's picture

You were too fast for me to proof read, but you got the drift;)

nmewn's picture

Nail guns are expensive.

knukles's picture

It's the weather, transitory and all that shit.

Emergency Ward's picture

...He comforts us when we're sad now
He sticks with us when times are bad....
To us he's out of sight

Oh, Jamie....

GetZeeGold's picture



JPMorgan To Fire Thousands


Word is a handful will need to be.....umm.....terminated.

grekko's picture

Speaking of Brando, I'd like to see Jamie wake up next to horses head.

Offthebeach's picture

Hair, skin tissue and blood, some times bone, get all over the tip trigger. Usually its dried up and requires mechanical disassembly and cleaning with dental picks, brass brush cleaning plus reassembly for the next banker. Also there is a bio hazard problem. Its labor intensive. You can hose it down with Teflon spray before use. That helps. Framing guns just aren't designed for soft tissue.

TheReplacement's picture

Wouldn't that suggest that someone (the firer) got away with it?

bubblemania's picture

It's the souvlaki and baklava bonus.

WTFRLY's picture

Holding out until the last minute, leveraging every day of  human capital possible.

Kaiser Sousa's picture

the longer all ya'll apostates take to bow before the only 2 forms of real money the greater the plagues and the agony....


"(Reuters) - Cyber criminals have infected hundreds of thousands of computers with a virus called "Pony" to steal bitcoins and other digital currencies, in the most ambitious cyber attack on virtual money uncovered so far, according to security firm Trustwave.  

Trustwave said on Monday that it has found evidence that the operators of a cybercrime ring known as the Pony botnet have stolen some 85 virtual "wallets" that contained bitcoins and other types of digital currencies. The firm said it did not know how much digital currency was contained in the wallets.


"It is the first time we saw such a widespread presence of this type of malware. It was on hundreds of thousands of machines," said Ziv Mador, security research director with Chicago-based Trustwave.

Trustwave said it believes the crime ring is still operating, though it does not know who is running the group. The company said it has disrupted the servers that were controlling machines infected with Pony, but expects the group to launch more attacks on virtual currency users."

there r only 2 forms of real moeny...Physical Gold and Silver....


TheReplacement's picture

But satoshi wrote a protocol.  You know, a set of rules.  You know, rules are meant to be broken.  You know, bitcoin is broken.

Kaiser Sousa's picture

just jump you assholes...


max2205's picture

He's richer than you so shut up

GetZeeGold's picture



...and a set of rule them all.

starman's picture

fuck yeah! all the roads will be fixed now with all that extra help all over the US! Heil fuhrer!

Ignatius's picture

How many of those 5,000 were taunting the OWS protesters from their offices?

SilverIsKing's picture

How many of those 15,000 - fell to the ground while they - were taunting the OWS protesters from their offices?

Dollarmedes's picture

OWS was an astroturf movement of disgruntled Communists and malcontents, part of whom wanted to "wet their beaks."

The rest of them were fighting for an ideology that was thoroughly discredited 30 or more years ago.

At any rate, they were rubes because the "gaming of the system" that's gone on has to a great extent been carried out under the Democrats that they laud.

If the 1%ers were mocking them, they were correct to do so but for the wrong reasons.

medium giraffe's picture

At around the same time most of Greece was on fire, the Spanish were inventing new recipes to take advantage of all the free tear gas coming their way, and parts of London will never quite look the same again.  OWS was more of a 70's revival 'love in' for iPhone waving pussies.  This from a nation of gun loving freedom evangelists.  It was really disappointing, certainly not worthy of the amount of popcorn I bought in anticipation.

greatbeard's picture

>> OWS was

And you are a fucking idiot follower.



Dollarmedes's picture

My, what a well-reasoned argument. How ever shall I respond?

Johnny Cocknballs's picture

I vote you jump off a building.

that'll show 'im.

Dollarmedes's picture

Thankfully, my life isn't up for a vote. It's probably a good thing your life isn't, either.

Greenskeeper_Carl's picture

i agree. they wanted more govt to come in and fix everything. Gotta love that statist mentality. Everything broken by the govt can only be fixed with, you guessed it, more govt

NOTW777's picture

OWS were soros paid re-elect obama campaign workers

darteaus's picture

"...knowing full well how it all end"

With a bankster bailout courtesy of the Great American Taxpayer!

CPL's picture

Yes, but the next time it happens a box of kleenex will be worth more than the money given.

new game's picture

fuck wells fargo, fuck wells!!!! i hate that bank with an extreme passion.

if the mother fucking bank collapsed into a black hole it would be a national holiday for the rest of my life!

TheReplacement's picture

So the hot teller at window three shut you down too eh?

Carbon Beach's picture

Bad Weather?

Jamie Dimon?

disabledvet's picture

"guns and butter" problem on the Street.

On the one hand they're financing a war trade.
On the other hand that means financing The Biggest Government Ever.

Growth must slow as a consequence.

Sorry about all the name calling earlier at everybody from me btw...but this whole "War in Mother Russia" pisses me off. Iraq now makes no sense, Afghanistan never made sense (outside of SF thing) and now "for our Grand Celebration we get Ukraine."

It all pisses me off because the only thing that can guarantee "border contiguity" is...of Army. using his Navy. using her mouth.

The State using "declarations backed up by the use of force."
(No funding sound about right?)
There's only one "force" on this Planet right now that is currently "usable" and its not the Navy or Marine Corps.

I will say this...I think Sec. Def's DoD cuts are DOA.
"yet again...more Government."
So absolutely the question remains "why are equity prices still going to the moon?"
And again "Zero Hedge is right to ask this question...and be totally wrong again."
That thing is well beyond walking on water now and in pure "levitation" mode.
As a Swedish girl once said to me "MY BIG BUDDHA!!!"
I therefore say (and have said in print) "Tesla at 700 bucks a share" as a consequence.
And yes, I hate General Electric too...but the thing this war will be fought with...has been fought with actually...are turbine engines.

Ballard Power had a big day today.
War sucks.
Phuck you human race.

Dollarmedes's picture

And if they find another ponzi scheme, those fired thousands will have new jobs!

We're moving from one crisis to the next, with no vision beyond the next quarter.

RaceToTheBottom's picture

Jaimie:  "Extra bonuses of salaries for work already performed for every Jumper"

MsCreant's picture

They probably have life insurance policies on these employees...which have been put up as collateral to buy stawks...which have then been rehypothecated to collateralize a bundle of MBS...which is being pledged to answer a margin call thus being rehypothecated yet again...

Blano's picture

Amazingly enough, especially in today's casino environment, that actually made sense.

grekko's picture

then dumped onto the COMEX during thinly traded hours...

Seasmoke's picture

Time for them to have their houses fraudclosed on by Jamie.

buzzsaw99's picture

to the faz, er, mobile, ah, fuck it, never mind

q99x2's picture

The president of the United States of America is half black.