JP Morgan & Citigroup Report Increased Legal Costs in 3rd Quarter - Regulations Matter
by
Adil Siddiqui
Two of the world’s largest banking institutes, JP Morgan and Citi have reported third quarter earnings. The banks saw an increase in the value spent on legal costs, the two reported upto $1 billion in expenses.
Th
e ongoing currency rigging case that has impacted the world's most liquid asset class, FX, has put banking institutions affected by the case in a spot of bother as their legal costs have ramped-up.
As corporates release their third quarter earnings, data published by leading firms such as; Citigroup and JP Morgan shows that both are spending considerable amounts on covering legal costs. The figures come as industry practitioners expect a number of firms to face the music with record monetary fines being issued.
Two of the world's largest FX banking firms have reported their third quarter earnings, both Citigroup and JP Morgan saw a rise in the amount they spent on legal issues. A number of banks involved in the FX rates manipulation investigation are expecting harsh conclusions as investigations evolve.
In its third quarter filings, J.P. Morgan states that its legal expenses have increased from last quarter's figure by $400 million. At the same time, rival Citigroup, has also seen a sharp rise in the amount of funds spent on legal expenses, the firm said legal expenses had risen by 40% year-on-year crossing $950 million.
The FX rates manipulation case were brought to light after investigations into the fixing of Libor rates led to further probes by banks and authorities. The FX probes have added a new layer of concern for industry professionals who were trying to bed the debacles of the 2008 recession.
The latest fiasco has impacted the world's largest banking organizations as well as central banks, over 30 key members of banks trading teams have been placed on leave as the banks conduct internal investigations, with a number of individuals suspended for breaches. The UK’s central bank, the Bank of England had reported that a staff member was suspended in relation to the FX fixing case.
Although JP Morgan has seen an increase in legal expenditure, the bank reported net income for the third quarter of 2014 of $5.6 billion, compared with a net loss of $0.4 billion in the third quarter of 2013. Its earnings per share were $1.36, compared with $(0.17) in the third quarter of 2013. Revenue for the quarter was $25.2 billion, up 5% compared with the prior year.
Citigroup saw a 13% increase in revenue of $19.97 billion signifying $1.15 a share. The bank saw trading activity increase as well as a slowdown in credit losses.
Th
e ongoing currency rigging case that has impacted the world's most liquid asset class, FX, has put banking institutions affected by the case in a spot of bother as their legal costs have ramped-up.
As corporates release their third quarter earnings, data published by leading firms such as; Citigroup and JP Morgan shows that both are spending considerable amounts on covering legal costs. The figures come as industry practitioners expect a number of firms to face the music with record monetary fines being issued.
Two of the world's largest FX banking firms have reported their third quarter earnings, both Citigroup and JP Morgan saw a rise in the amount they spent on legal issues. A number of banks involved in the FX rates manipulation investigation are expecting harsh conclusions as investigations evolve.
In its third quarter filings, J.P. Morgan states that its legal expenses have increased from last quarter's figure by $400 million. At the same time, rival Citigroup, has also seen a sharp rise in the amount of funds spent on legal expenses, the firm said legal expenses had risen by 40% year-on-year crossing $950 million.
The FX rates manipulation case were brought to light after investigations into the fixing of Libor rates led to further probes by banks and authorities. The FX probes have added a new layer of concern for industry professionals who were trying to bed the debacles of the 2008 recession.
The latest fiasco has impacted the world's largest banking organizations as well as central banks, over 30 key members of banks trading teams have been placed on leave as the banks conduct internal investigations, with a number of individuals suspended for breaches. The UK’s central bank, the Bank of England had reported that a staff member was suspended in relation to the FX fixing case.
Although JP Morgan has seen an increase in legal expenditure, the bank reported net income for the third quarter of 2014 of $5.6 billion, compared with a net loss of $0.4 billion in the third quarter of 2013. Its earnings per share were $1.36, compared with $(0.17) in the third quarter of 2013. Revenue for the quarter was $25.2 billion, up 5% compared with the prior year.
Citigroup saw a 13% increase in revenue of $19.97 billion signifying $1.15 a share. The bank saw trading activity increase as well as a slowdown in credit losses.
Institutional FX Demand Continues to Climb in April
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
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Looking to expand your network in #Africa?
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Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
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Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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