After taking a hit on its net income primarily because of the high litigation expenses, JPMorgan Chase & Co. (NYSE:JPM)’s CEO targeted the increasing government scrutiny in business. The largest bank of America, in terms of assets, reported record annual net income for fiscal 2014 along with legal expenses of $990 million for the fourth quarter, 2014.
While discussing the quarterly results with reporters, JPMorgan CEO, Jamie Dimon, mentioned the increasing scrutiny from government authorities. He said,
“We have five or six regulators or people coming after us on every different issue. It’s a hard thing to deal with.”
The bank had to spend $990 million to cover its legal settlements during the quarter, which was double the market expectation.
At the same time, Dimon talked about the New Federal Reserve rules under which JPMorgan Chase & Co. (NYSE:JPM) needs an additional $20 billion to satisfy the new capital requirements. Dimon was confident that the bank would meet the requirements but also mentioned that these regulations are not directed towards lowering risks but just to enlarge the capital size. He further added that the assault on businesses is likely to create an unhealthy business environment in future.
Earlier, JPMorgan Chase & Co. (NYSE:JPM) reported net income of $4.9 billion in the fourth quarter of 2014 with 11% decline from the previous year period. The bank reported earnings per share of $1.19 on net quarterly revenue of $23.6 billion. JPMorgan released figures for its annual year with net income of $21.8 billion along with EPS of $5.29 for 2014. Net revenues stood at $97.9 billion for the year with 2% decline from the previous year.
The shares of JPMorgan Chase & Co. (NYSE:JPM) are trading at $56.81 and the share of the bank fell in excess of 4 percent after the fourth quarter results.
This article has been written by Prakash Pandey.