JPMorgan to lay off 5,000 employees across firm: WSJ

[Omaha Steve]

Source: AP

By KEN SWEET

NEW YORK (AP) — JPMorgan Chase & Co. will cut about 5,000 jobs over the next year, as the bank closes branches and slims down its operations, The Wall Street Journal reported Thursday, citing anonymous sources.

A representative for the New York bank declined to comment.

The job cuts will come from across the bank, but particularly from the consumer bank. JPMorgan CEO Jamie Dimon, at an investor conference this week, said that the average Chase branch would lose one employee — mostly through attrition.

JPMorgan executives said in February that they expected to have 300 fewer branches over the next two years — roughly 5 percent of its network — because more customers were doing everyday banking transactions online or on their smartphones. The bank had 5,570 branches as of the first quarter.

Read more: http://bigstory.ap.org/article/ea702948fe18402db79590bdf27b8a4f/jpmorgan-lay-5000-employees-across-firm-wsj

[Bonhomme Richard]

1. Hey..gotta pay those fines some way.

You don't think it's going to come out of their pockets do you? Let the ones way down the company ladder pay.

[starroute]

2. The banks really want to get out of consumer banking

http://www.bloombergview.com/articles/2015-04-27/why-big-banks-don-t-want-your-money

With two of the world's largest banks -- HSBC and Deutsche Bank -- facing huge fines for transgressions in dealing with investors and wealthy clients, markets' attention is focused on what they plan to do with their retail units. This is strange, because getting rid of these operations would hardly be the most logical or inspired solution to their problems.

HSBC's share price surged Monday after the Sunday Times newspaper reported that the bank is thinking about spinning off its U.K. retail unit. Deutsche Bank, for its part, announced a restructuring plan that includes selling a controlling stake in Postbank, a retail institution Deutsche bought in 2010. Deutsche also wants to trim its own retail operation by 200 branches by 2017. . . .

In some ways, the juxtaposition makes sense. Cutting costs and reducing regulatory attention are particularly urgent imperatives for banks with tarnished reputations. Jettisoning retail operations is one way to do that. The way it is practiced in Europe today, retail is costly, and low interest rates are squeezing margins. At HSBC, retail's share in operating income has been declining much faster than its share of non-interest expenses. In a lengthy report a month ago, JP Morgan called Deutsche's retail a "problem child" and urged the German bank to sell Postbank and retail operations outside Germany to cut costs and improve profitability.

[olddots]

3. it seems like there are 84 zillion Chase branches in the San Fernando Valley

every failed strip mall bizz becomes a Chase branch if not a Wells Fargo or B of A branch.They appear to be doing no foot traffic .Something is fishy in 1% er land .

[TexasBushwhacker]

4. I bet Jamie gets a bonus

for increasing profitability.