Summary
JPMorgan Chase & Co. (JPM) filed an 8-K on January 8, 2013, reporting two significant events. First, James E. Staley, Chairman of the Corporate & Investment Bank, is departing the firm to join BlueMountain Capital Management. This departure from a key leadership position may lead to strategic adjustments within the Corporate & Investment Bank division. Second, the firm has entered into a settlement with the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System to terminate the Independent Foreclosure Review programs. As part of this settlement, JPM will pay $753 million to a settlement fund for borrowers and has committed an additional $1.2 billion to foreclosure prevention actions, recognized through credits from a previous global settlement. The company anticipates a pretax charge of approximately $700 million in the fourth quarter of 2012 related to this settlement, with full fourth quarter results to be reported on January 16, 2013.
Key Highlights
- 1James E. Staley, Chairman of the Corporate & Investment Bank, is leaving JPM to join BlueMountain Capital Management.
- 2JPM has reached a settlement with the OCC and Federal Reserve to terminate Independent Foreclosure Review programs.
- 3The settlement includes a cash payment of $753 million to a borrower settlement fund.
- 4JPM has committed an additional $1.2 billion to foreclosure prevention actions under the settlement.
- 5The firm expects to incur a pretax charge of approximately $700 million in Q4 2012 related to this settlement.
- 6JPM will report its Q4 2012 results on January 16, 2013.