Staff at this top firm may soon be having their year-end bonus expectations managed.
The New York Post reports that the London Whale is playing in JPMorgan’s bonus pool.
The disastrous derivatives trade that cost the bank $6.2bin, coupled with a barrage of regulatory fines and penalties, is expected to cut earnings - and by extension year-end bonuses.
The hit to the bonus pool will depend in large part on the bank’s final legal tab. Beyond the whale fine, JPMorgan is in negotiations with state and federal officials to pay as much as $11bn to resolve a raft of mortgage-related probes and litigation.
'We don’t know what litigation expenses it has reserved for, but if the bank is adversely impacted by (litigation) charges, you’d expect to see that impact on compensation', said Barclays bank analyst Jason Goldberg.
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