JPMorgan can deduct big chunk of $13 billion deal

[Eugene]

Source: CNNMoney

JPMorgan can deduct big chunk of $13 billion deal

By Jeanne Sahadi @CNNMoney November 19, 2013: 7:06 PM ET

NEW YORK (CNNMoney)

The majority of the $13 billion settlement JPMorgan struck with the government Tuesday is likely to be tax deductible, reducing the bank's financial hit.

Here's why: Many of the costs associated with corporate legal cases are treated as deductible under the tax code, in much the same way that a company's wages or equipment expenses are.

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And it's JPMorgan's understanding that the $2 billion is not deductible, the bank's chief financial officer said on an analyst call Tuesday.

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But here's the general bottom line: The compensation or restitution portions of a settlement like the one struck by JPMorgan (JPM, Fortune 500) may be deducted, but the penalties can't.

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Read more: http://money.cnn.com/2013/11/19/news/companies/jpmorgan-doj-deal/

[CFLDem]

1. Hard to lose when you rig the game. n/t

[legcramp]

2. Obama Says JPMorgan ‘One of the Best-Managed Banks There Is’

Pretty smart management on Jamie's part I would say.

"JPMorgan is one of the best-managed banks there is," President Obama told the hosts of the The View in an interview that will air on ABC at 11 a.m. ET on Tuesday. "Jamie Dimon, the head of it, is one of the smartest bankers we got." A Democrat heaping praise on Wall Street? In an election year? Then came the kicker: "And they still lost $2 billion and counting."

http://nymag.com/daily/intelligencer/2012/05/obama-jpmorgan-one-of-the-best-managed-banks.html