Chart Of The Day: JPMorgan's $30 Billion In Legal Fees And Expenses Since 2010 (And Why The New Compliance Officer Just Quit)

Tyler Durden's picture


The most stunning chart from today's plethora of JPMorgan investor day presentations was this one derived from the expense chart on page 22, listing the firm's various non-corporate and corporate legal expenses, as well as foreclosure related matters: in other words, the amount of money the company pays to continue operations as an implicit criminal enterprise, however without ever having to admit or deny guilt to the US department of justice, and without the resulting incarcerations. Think of it as racketeering money by Uncle Sam to allow JPM to continue operations. The number: since 2010 JPM has paid a mindblowing $29.8 billion in "one-time, non-recurring" legal fees, charges, settlements, and otherwise expenses that in theory at least should not be part of its ongoing business operations.... but are.


If nothing else, this chart explains why Jamie Dimon's bonus was hiked by 74% in 2013 to $20 million, and why, on the one year anniversary of his legendary quote explaining why he is richer than you, he is, well, just that.


One other thing the chart explains is this news from the WSJ:

J.P. Morgan's Chief Compliance Officer Leaves Firm


JPMorgan's chief compliance officer has left the nation's largest bank as J.P. Morgan grapples with a variety of regulatory headaches, lawsuits and investigations, according to a memo reviewed by The Wall Street Journal and people familiar with the move.


Cindy Armine, who was in the post for roughly one year, exited for a position with another company, according to the company memo. The new company wasn't named in the memo, but people familiar with the move expect her to take a job with First Data Corp., the Atlanta payment processor run by former J.P. Morgan executive Frank Bisignano. A First Data spokeswoman couldn't be reached immediately for comment.


Mr. Bisignano has recruited several former colleagues since leaving J.P. Morgan last April, angering some old counterparts at J.P. Morgan. First Data agreed last month to pay millions of dollars to J.P. Morgan in exchange for a pledge from the bank that it wouldn't challenge any new hires, said people familiar with the deal.


The exit of Ms. Armine is the latest in a string of high-profile departures as the bank works to improve controls and satisfy regulators. Her role involved direct dealings with U.S. regulators and monitoring of J.P. Morgan's compliance with all laws and regulations.

At least no nail guns were involved in this termination after just one year.

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Tue, 02/25/2014 - 15:03 | 4476640 Divided States ...
Divided States of America's picture

Soon to have to add another column for compensation for 'suicides' of employees

Tue, 02/25/2014 - 15:05 | 4476668 logicalman
logicalman's picture

They'll cover it with their latest wonderful idea - Death Derivitives!

Tue, 02/25/2014 - 15:06 | 4476670 TruthInSunshine
TruthInSunshine's picture

Jamie is in the Big Club (for now).

This 30 billion has been paid out by taxpayers, as JPM is too big to fail or jail, and is a proxy bank of the USSA, being plied with ca$h by the Treasury & Federal Reserve Racketeering Organization.

Tue, 02/25/2014 - 15:07 | 4476679 insanelysane
insanelysane's picture

JPMorgan's $30 Billion In Gorvernment Payoffs


Fixed it for ya

Tue, 02/25/2014 - 15:14 | 4476721 TruthInSunshine
TruthInSunshine's picture

p.s. - Forgot to mention that Blythe Masters' Tools for Twats charity campaign begins this weekend and runs through the end of March.

If you have a pneumatic nail gun you'd like to donate to a banker, there will be drop boxes at all Chase ATMs through that time period.

Tue, 02/25/2014 - 15:29 | 4476761 HyBrasilian
HyBrasilian's picture

Fuck me ~ I've TOTALLY misunderestimated the 'CHEESE' that SHYSTER lawyers get paid these days...


Oh well... PHASE 2 of the 'OPERATION' is securely underway ~ [at least until the LEGAL COMPENSATION FRAUD MARKET goes the way of the devaluation of the CHEESE]... Their 'wells' of legal claims on DRUGS & MEDICATIONS must be running dry]...






Homeschooling BITCHEZ! ~ It NEVER ends [in a PAPER society ~ controlled by... YOU GUESSED IT... 'Digital Paper Mass Media']...

Tue, 02/25/2014 - 15:39 | 4476833 Occident Mortal
Occident Mortal's picture

Someone needs to juxtapose JPM and BP.

Tue, 02/25/2014 - 15:51 | 4476889 williambanzai7
williambanzai7's picture

Wed, 02/26/2014 - 00:18 | 4478942 StychoKiller
StychoKiller's picture

J.P. Morgan Chief Compliance Officer -- Isn't that like sticking yer arm in a wood chipper? 

Tue, 02/25/2014 - 16:29 | 4477026 Grinder74
Grinder74's picture

I just got a "unilateral account closing" letter from Chase's "Operating Loss Prevention" department because apparently they didn't like the activity in my know, frequent and large deposits from a thriving small business.  So now I'm scrambling to re-setup all my banking, payroll and vendors somewhere else.  


Tue, 02/25/2014 - 15:02 | 4476648 Ban KKiller
Ban KKiller's picture

Continuing criminal enterprise. Death to the law of course.

Nail guns, falls, poison...All acceptable ways for Banksters to off themselves.

Tue, 02/25/2014 - 16:30 | 4477028 Againstthelie
Againstthelie's picture

Cindy should watch her back.

Tue, 02/25/2014 - 15:03 | 4476656 Tinky
Tinky's picture

Meh. Cost of doing business.

Tue, 02/25/2014 - 15:04 | 4476661 centerline
centerline's picture

And as a percentage of yearly revenue?

Tue, 02/25/2014 - 15:05 | 4476666 Cognitive Dissonance
Cognitive Dissonance's picture

"Just the cost of doing bidness." - Tony Soprano

Tue, 02/25/2014 - 15:06 | 4476675 TrustWho
TrustWho's picture

Technically speaking, "one-time, non-recurring" EXPENSES just happened and can NOT be managed.  Does or Does Not the "Greatest Bank Manager Since Beginning of Time", Jamie Dimon, allow this expense line to be uncontrolled?

Tue, 02/25/2014 - 15:07 | 4476680 dizzyfingers
dizzyfingers's picture

 $29.8 billion seems a pittance given the ill they've been doing... when it gets to $29.8 trillion, I'll be impressed.

Tue, 02/25/2014 - 15:10 | 4476686 Dr. Engali
Dr. Engali's picture

Now worries, Jamie just laid off 8,000 mortgage brokers to help recoup the costs.

Tue, 02/25/2014 - 15:08 | 4476689 Frank N. Beans
Frank N. Beans's picture


ha ha ha


Tue, 02/25/2014 - 15:09 | 4476692 NOTaREALmerican
NOTaREALmerican's picture

One time charges, one time charges...    Move along.

Tue, 02/25/2014 - 15:14 | 4476693 max2205
max2205's picture

No interest to savers. Pay interest to jpm and give them 100% trades. Jpm Fines to DOJ to Treas to FSA DNC


Tue, 02/25/2014 - 15:15 | 4476695 SgtShaftoe
SgtShaftoe's picture

Just wait till the bank is charged with 15 counts of serial murder.  Though I don't think it will be a US court that files those charges. 

That's not even counting charges related to the shorts of United and Amurikan airlines before 9/11. 

These fuckers will FUCKING FRY eventually.  They should hold the executions as gladiator matches with forclosed homeowners with swords and axes.  They'd serve hot dogs and beer.  The bankers would each be armed with a keyboard and mouse.

Tue, 02/25/2014 - 15:30 | 4476790 denverdolomte
denverdolomte's picture

Don't forget the bankers would also be armed with their US Gov cufflinks.

Wed, 02/26/2014 - 15:18 | 4481246 Rafferty
Rafferty's picture

They should fry but I doubt they will.  They seem to have every angle covered, Congress, all the 'oversight' (ha!) agencies and the MSM.   Hope I'm wrong.

Tue, 02/25/2014 - 15:11 | 4476706 q99x2
q99x2's picture

That's nearly enough to give every American 100 dollar menu hamburgers.

Tue, 02/25/2014 - 15:19 | 4476746 ziggy59
ziggy59's picture

..and dirt bag dimon gets a raise..
The whole firm should be investigated by a true justice system ..there are so many laws thee freaks have and continue to break, no?

Tue, 02/25/2014 - 15:25 | 4476772 denverdolomte
denverdolomte's picture

“I don't trust society to protect us, I have no intention of placing my fate in the hands of men whose only qualification is that they managed to con a block of people to vote for them.” 
Mario PuzoThe Godfather


 American public would be a good justice system. Or all the people that this bank has destroyed their livelihoods. Or a pride of lions. 

Tue, 02/25/2014 - 15:21 | 4476754 medium giraffe
medium giraffe's picture

I couldn't be bothered to read the full report, but the comments on page 3 that read:


"Expense – maintained adjusted overhead ratio of ~58- 59% over last 3 years"


Is this percentage of net?  Do they think that this is somehow a sustainable business model? 

Tue, 02/25/2014 - 16:32 | 4477046 waterhorse
waterhorse's picture

It certainly IS a "sustainable business model" when you are Too Big To Fail.

Tue, 02/25/2014 - 15:27 | 4476779 Cannon Fodder
Cannon Fodder's picture

I'm curious as to the revenue/profit on those activities that require $30 billion in legal fees...

Tue, 02/25/2014 - 15:31 | 4476791 MrBoompi
MrBoompi's picture

I know in another post George Washington said it's better not to use profanity in a post, but is Dimon the biggest fucking douchebag in banking or what?



Tue, 02/25/2014 - 16:33 | 4477052 waterhorse
waterhorse's picture

Yes, call him what he is, though I think he rivals Blankfein and Benmosche in the douchebaggery category.

Tue, 02/25/2014 - 15:39 | 4476832 strangeglove
strangeglove's picture

And these are the guys that own the FED?

I see what they did there

we are so fooked! Get ready for the milking

Tue, 02/25/2014 - 15:39 | 4476834 strangeglove
strangeglove's picture

And these are the guys that own the FED?

I see what they did there

we are so fooked! Get ready for the milking

Tue, 02/25/2014 - 15:42 | 4476848 dizzyfingers
dizzyfingers's picture Seems only fair to share...

Tue, 02/25/2014 - 15:57 | 4476911 philosophers bone
philosophers bone's picture

The Chief Compliance Officer resigned because she is afraid of tall buildings and does not have wings to fly. 

Tue, 02/25/2014 - 16:27 | 4477020 BullyBearish
BullyBearish's picture

At the moment Dimon and Corzine are indicted along with Holder I'll know we have a chance.

Tue, 02/25/2014 - 16:31 | 4477037 PontifexMaximus
PontifexMaximus's picture

Could have been a 100 billion, share price would still be nicely up. So, who cares, châpeau Mr. Dimon, well done, you shareholders are more than happy with you. And also the sheeples via their 401.

Tue, 02/25/2014 - 17:07 | 4477223 Save_America1st
Save_America1st's picture

so hey, what are the odds on how long it will take for the chief compliance officer to get "suicided"?

Choice of suicide?  The best one, by way of 8 "self inflicted" shots from a nail gun has already been used.  Man, that guy was creative!

Maybe she'll shoot herself, twice, in the back of the head with a 12 Gauge Mossberg???

Tue, 02/25/2014 - 17:40 | 4477373 Darkside
Darkside's picture

You Fucking idiots. The SEC has to get thier cut and fines and legal fees are a way of getting it there. Who is going to dig through the accounting of JPM. Dimon just plays the game.

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