Wednesday, July 30th13.7°C
21450

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. 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

22447


Recent Trending




Today's Market
S&P TSX15446.55+1.33
S&P CDNX1016.50-3.35
DJIA16912.11-70.48
Nasdaq4442.698-2.211
S&P 5001969.95-8.96
CDN Dollar0.9202-0.0014
Gold1310.00+6.70
Oil101.22+0.25
Lumber322.20-0.80
Natural Gas3.73-0.017

 
Okanagan Companies
Pacific Safety0.185-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.20+0.05
Cantex0.085+0.02
Anavex Life Sciences0.2675+0.0025
Metalex Ventures0.085+0.005
Russel Metals35.29+0.14
Copper Mountain Mining2.86-0.11
Colorado Resources0.2250.00
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.035+0.015
Mission Ready Services0.155-0.035

 



21623

FEATURED Property
2000282#76-2005 boucherie road
3 bedrooms 2 baths
$99,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Take charge of your debt

Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...


Geopolitical tensions rattle markets

The Big Picture Geopolitical tensions rattle markets The spectre of rising geopolitical tensions in Ukraine and Gaza cast a shadow over an otherwise positive week in the markets. News that a passenger...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...

_








Member of BC Press Council


22097