Sunday, August 2nd16.0°C
26264
26096

JPMorgan plans to cut 8,000 more jobs

JPMorgan Chase plans to eliminate 8,000 jobs this year as its mortgage business shrinks and the giant bank aims to control costs at its branches.

About half of those job cuts had already been announced. JPMorgan Chase now plans to cut more jobs — about 3 per cent of its workforce of 251,000 — as it tries to reduce $2 billion in consumer banking expenses by the end of 2016. But the bank said it would add about 3,000 jobs in other areas this year.

The new job cuts announced Tuesday are in its mortgage and retail banking businesses. The bank also cut 16,500 jobs last year in those areas.

JPMorgan's mortgage business, like that of other big banks, is declining as fewer Americans refinance their home loans. In the years following the recession, low interest rates caused a boom in mortgage refinancing. But interest rates began rising midway through 2013.

"We're seeing much lower volumes as we're going through the first quarter of 2014," said Gordon Smith, who runs the company's consumer and community banking business. The company said its mortgage business will lose money this year. Smith and other JPMorgan executives spoke at the company's investor day in New York, which was webcast.

In November his company agreed to pay $13 billion to settle a civil inquiry into its sales of low-quality mortgage-backed securities that collapsed in value. It also announced a $4.5 billion settlement with 21 major institutional investors over mortgage-backed securities issued by it and Bear Stearns between 2005 and 2008. JPMorgan acquired Bear Stearns in 2008.

"It's been the most painful business ever," said Jamie Dimon, the company's chairman and CEO. He added that it would be reasonable for investors to ask why they're in the mortgage business at all. But mortgages are critical for most Americans and they're an important product for the bank, he said.

"If I had a choice, I would never be in default servicing again," he said. "I would tell anyone who's got a mortgage with us, 'You're 60 days late, we're selling the mortgage, and we don't want to do any business with you anymore.' It's just far too painful."

The Canadian Press

COMMENTS WELCOME

Comments on this story are pre-moderated and approval times may vary. Before they appear, comments are reviewed by moderators to ensure they meet our submission guidelines. Keep it clean, keep it civil, keep it truthful, stay on topic and be responsible. Comments are open and welcome for three days after the story is published. We reserve the right to close comments before then. Comments that appear on the site are not the opinion of Castanet, but only of the comment writer.



Read more Business News




Recent Trending




Today's Market
S&P TSX14468.44+85.68
S&P CDNX594.31+6.01
DJIA17689.86-56.12
Nasdaq5128.28-0.50
S&P 5002103.84-4.79
CDN Dollar0.7640-0.0052
Gold1096.90+0.60
Oil47.22-1.69
Lumber252.30+0.50
Natural Gas2.883+0.062

 
Okanagan Companies
Pacific Safety0.17-0.01
Knighthawk0.010.00
QHR Technologies Inc1.42+0.00
Cantex0.035-0.005
Anavex Life Sciences0.9101+0.1101
Metalex Ventures0.05+0.00
Russel Metals19.40-0.05
Copper Mountain Mining0.79+0.01
Colorado Resources0.065+0.005
ReliaBrand Inc0.0049+0.0004
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.095-0.045
Decisive Dividend Corp2.55+0.05

 



26873

FEATURED Property
20082451040 CAWSTON AVE
4 bedrooms 3 baths
$439,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_



26370

26370


Member of BC Press Council


26916