Later on Thursday the Consumer Financial Protection Bureau announced that subsidiaries of JPMorgan had already refunded $309 million in fees paid by customers, resulting from " illegal credit card practices." The refunds went to roughly 2.1 million customers, to whom JPMorgan subsidiaries sold "credit monitoring" or "credit protection" products from 2005 through June 2012. The Office of the Comptroller of the Currency also fined JPMorgan $60 million, which the regulator in a statement said reflected "the scope and duration of the violations and financial harm to consumers from the unfair practices." JPMorgan Chase's total regulatory tab on Thursday came to $1.289 billion. The company's CFO Marianne Lake at a conference on Sept. 9 had said JPM 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." The Wall Street Journal reported last week that JPMorgan expected its additional costs for enhanced regulatory compliance -- including legal expenses and the hiring of 5,000 employees -- would total $4 billion during the second half of 2013. But even that figure is significantly lower than the pretax losses from the "London Whale" last year, when JPMorgan booked net income of $21.3 billion, or $5.20 a share, which was the company's third-straight record annual profit. JPMorgan's shares were down 1.2% to close at $52.75. JPM data by YCharts Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.
Steve Ricchiuto, MZUHO Securities chief economist, and Bob Michele asset management global CIO with JP Morgan (JPM), joined BloomberTV's 'Bloomberg GO' to discuss the economy and the Fed raising rates.