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    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

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.

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Mon, 02/24/2014 - 20:28 | 4473102 fonestar
fonestar's picture

But Dimon's leadership is so excellent?

Mon, 02/24/2014 - 20:29 | 4473111 Alcoholic Nativ...
Alcoholic Native American's picture

He's cutting the fat.  

Mon, 02/24/2014 - 20:31 | 4473126 TahoeBilly2012
TahoeBilly2012's picture

Front running the next crash

Mon, 02/24/2014 - 20:33 | 4473142 HyBrasilian
HyBrasilian's picture

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

Mon, 02/24/2014 - 20:39 | 4473167 kaiserhoff
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.

Mon, 02/24/2014 - 20:43 | 4473180 Looney
Looney's picture

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

Looney

Mon, 02/24/2014 - 20:44 | 4473188 kaiserhoff
kaiserhoff's picture

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

Mon, 02/24/2014 - 20:56 | 4473229 nmewn
nmewn's picture

Nail guns are expensive.

Mon, 02/24/2014 - 21:02 | 4473259 knukles
knukles's picture

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

Mon, 02/24/2014 - 21:32 | 4473348 Emergency Ward
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....

Mon, 02/24/2014 - 21:46 | 4473379 GetZeeGold
GetZeeGold's picture

 

 

JPMorgan To Fire Thousands

 

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

Tue, 02/25/2014 - 01:02 | 4474180 Freddie
Freddie's picture

Terminate with extreme prejudice.

http://www.youtube.com/watch?v=GjB8z0Bvi14

 

Tue, 02/25/2014 - 06:35 | 4474476 GetZeeGold
GetZeeGold's picture

 

 

Do you find Jamie's methods....unsound?

http://www.youtube.com/watch?v=WdNsltQXTVU

Tue, 02/25/2014 - 08:33 | 4474629 grekko
grekko's picture

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

Tue, 02/25/2014 - 14:10 | 4476344 Offthebeach
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.

Mon, 02/24/2014 - 22:36 | 4473581 TheReplacement
TheReplacement's picture

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

Mon, 02/24/2014 - 21:25 | 4473320 bubblemania
bubblemania's picture

It's the souvlaki and baklava bonus.

Mon, 02/24/2014 - 21:39 | 4473362 WTFRLY
WTFRLY's picture

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

Mon, 02/24/2014 - 21:38 | 4473358 Kaiser Sousa
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."

http://www.reuters.com/article/2014/02/24/us-bitcoin-security-idUSBREA1N...

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

 

Mon, 02/24/2014 - 22:39 | 4473598 TheReplacement
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.

Mon, 02/24/2014 - 20:29 | 4473108 Kaiser Sousa
Kaiser Sousa's picture

just jump you assholes...

DEATH TO THE MONEYCHANGERS.........

Mon, 02/24/2014 - 20:34 | 4473146 max2205
max2205's picture

He's richer than you so shut up

Tue, 02/25/2014 - 06:04 | 4474452 GetZeeGold
GetZeeGold's picture

 

 

...and a set of cufflinks....to rule them all.

Mon, 02/24/2014 - 20:30 | 4473117 starman
starman's picture

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

Mon, 02/24/2014 - 20:32 | 4473118 Ignatius
Ignatius's picture

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

Mon, 02/24/2014 - 20:33 | 4473138 SilverIsKing
SilverIsKing's picture

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

Mon, 02/24/2014 - 20:47 | 4473201 Dollarmedes
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.

Mon, 02/24/2014 - 21:09 | 4473271 medium giraffe
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.

Mon, 02/24/2014 - 21:17 | 4473295 greatbeard
greatbeard's picture

>> OWS was

And you are a fucking idiot follower.

 

 

Mon, 02/24/2014 - 21:39 | 4473360 Dollarmedes
Dollarmedes's picture

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

Mon, 02/24/2014 - 21:46 | 4473378 Johnny Cocknballs
Johnny Cocknballs's picture

I vote you jump off a building.

that'll show 'im.

Mon, 02/24/2014 - 22:26 | 4473535 Dollarmedes
Dollarmedes's picture

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

Mon, 02/24/2014 - 22:11 | 4473469 Greenskeeper_Carl
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

Mon, 02/24/2014 - 20:57 | 4473235 NOTW777
NOTW777's picture

OWS were soros paid re-elect obama campaign workers

Mon, 02/24/2014 - 20:32 | 4473133 darteaus
darteaus's picture

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

With a bankster bailout courtesy of the Great American Taxpayer!

Mon, 02/24/2014 - 20:35 | 4473148 CPL
CPL's picture

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

Mon, 02/24/2014 - 20:34 | 4473144 new game
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!

Mon, 02/24/2014 - 22:42 | 4473613 TheReplacement
TheReplacement's picture

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

Mon, 02/24/2014 - 20:38 | 4473160 Carbon Beach
Carbon Beach's picture

Bad Weather?

Jamie Dimon?

Mon, 02/24/2014 - 22:26 | 4473536 disabledvet
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.
PERIOD.

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 course...an Army.

Putin....is using his Navy.
Merkel...is using her mouth.

The State Department...is using "declarations backed up by the use of force."
(No Army...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.
For EVERYTHING.

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

Mon, 02/24/2014 - 20:40 | 4473170 Dollarmedes
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.

Mon, 02/24/2014 - 20:42 | 4473181 RaceToTheBottom
RaceToTheBottom's picture

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

Mon, 02/24/2014 - 21:20 | 4473303 MsCreant
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...

Tue, 02/25/2014 - 00:06 | 4473976 Blano
Blano's picture

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

Tue, 02/25/2014 - 08:25 | 4474619 grekko
grekko's picture

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

Mon, 02/24/2014 - 23:13 | 4473759 The Most Intere...
The Most Interesting Frog in the World's picture

and 1,000 virgins!

Mon, 02/24/2014 - 20:43 | 4473186 Seasmoke
Seasmoke's picture

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

Mon, 02/24/2014 - 20:45 | 4473193 buzzsaw99
buzzsaw99's picture

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

Mon, 02/24/2014 - 20:45 | 4473195 q99x2
q99x2's picture

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

Tue, 02/25/2014 - 07:51 | 4474565 ThisIsBob
ThisIsBob's picture

And half yellow.

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