Regulators' success in generating four days of consecutive negative headlines this week, showed an enhanced focus on maximizing media pressure against the bank, as the pattern of leaks against JPMorgan intensified.
JPMorgan's shares were down 1% in early trading to $52.79, with the subdued reaction possibly showing relief over the settlement amount, which is far less than the third-quarter litigation expenses CFO Marianne Lake hinted at when speaking at a conference on Sept. 9.
Lake said the bank was expecting net losses in its mortgage origination business during the second half of 2013, and that a "crescendo" of regulatory activity would lead to additions to third-quarter additions to litigation reserves "which will more than offset the $1.5 billion or so of consumer reserve releases."
JPMorgan CEO James Dimon in a recent internal memo on Tuesday had warned employees that there was "more to come" in the "weeks and months" ahead, regarding "legal and regulatory issues facing our company."Dimon in a statement on Thursday said "We have accepted responsibility and acknowledged our mistakes from the start, and we have learned from them and worked to fix them. We will continue to strive towards being considered the best bank - across all measures - not only by our shareholders and customers, but also by our regulators." Dimon added that "Since these losses occurred, we have made numerous changes that have made us a stronger, smarter, better Company." JPM data by YCharts
-- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn
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