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JPMorgan to Suffer $4B Compliance Hit in 2013: Report

Among the large figures being bandied about through various leaks to media outlets, the Federal Housing Finance Agency -- which regulates Fannie and Freddie -- is looking for JPMorgan to cough up $6 billion to settle claims the bank falsely claimed loans sold to government-sponsored enterprises met required underwriting standards, according to The Financial Times.

The Journal last week reported JPMorgan would completely exit student lending as part of a continuing effort to "simplify" its operations, although federal regulators' proposed leverage capital rules provide plenty of incentive for the biggest banks to focus on higher-risk, higher return businesses.

JPMorgan weathered the post-crisis environment quite well through 2012 with record earnings for three years running. But the regulatory costs are mounting, making it possible that Wells Fargo (WFC - Get Report) will jump to the head of the line as the nation's most profitable bank.

A JPMorgan Chase spokesperson said the company had no additional comment. Dimon was interviewed by the Journal, saying "Fixing our controls issues is job No. 1... This is a huge investment of people, time and money...but it will make us stronger in the long run."

JPMorgan's shares were up 0.4% in early trading, to $52.45.

JPM Chart JPM data by YCharts

Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.

-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
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