Revenue pressures and relatively slow trading conditions to blame.
MarketWatch reports that J.P. Morgan Chase & Co. could face pay cuts and job reductions in its investment bank, due in part to revenue pressures and relatively slow trading conditions, the firm's Chief Financial Officer said Wednesday.
Speaking at an investor conference in New York, J.P. Morgan CFO Marianne Lake said the firm could cut compensation if it continues to face short-term revenue pressures. She didn't give a time frame, however.
J.P. Morgan determines compensation based on a number of factors, including risk-adjusted returns, performance and competition, she added.
Ms. Lake, who described the revenue pressures as cyclical, also said there is 'too much capacity' in the fixed-income area, where bonds and other contracts tied to rates and currencies trade. That could lead to cuts in J.P. Morgan's business over time, depending on market conditions.
J.P. Morgan's market share in fixed income, currencies and commodities, or FICC, dropped to 15.4% in the first quarter of this year compared with 18.6% for the full year 2013, according to Ms. Lake's investor presentation.
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