Nov 20 - Breakingviews editors discuss why the megabank’s $13 billion settlement with U.S. watchdogs creates new financial challenges for the entire industry.
The US government's long awaited -- -- JPMorgan 813 billion dollar enchilada finally landed officially yesterday no huge surprises. Record fine now four million dollars of homeowner released relief that'll require monitor. For the bank for what does -- have -- but. You know Anthony Jamie Dimon and must be thrilled to have this office desk but there's really some challenges ahead not only for JPMorgan for other banks also. Yeah accidentally menacing thing going on all home 23 miles down and up to stifle the the government shut down -- like -- apple has delayed and it was gonna happen again and again and again and -- off. I -- the Iraq. There are concerns out that it that the that the -- government agents involved in this has just got off to JPMorgan -- the other hand if he's corrupt -- in this includes a lot of them money to its latency we've -- Washington Mutual and best and take that -- is Europe you pay -- anymore it's not feeling -- screwed up but not absolutely look forward to all that the big and funding given to the justice department of the -- -- think. It's pretty much all taking -- I'd say they're getting a big -- on that one that is of course the big company you Ryan it's it's not the end of the offense. For banks might -- problems or indeed a broader issues -- face -- well this is another short term outlook is not so upon either set right at midnight generally speaking if you look at -- the banks been performing at Austin utility. Ever since it became hotter and how to make money on trading. And various reasons that I had a straits time 2001 lots of government. Simple for the markets asset -- suddenly skyrocketed don't try this at home and when it was and it made as a money so what happens is then people grumble a more defensive. As traders the banks themselves says. Let's put out of things there's sort of a situation where a Weathers in most markets -- -- trading whatever there and if you brought spots like -- banks. Coal signings immunity for that we take out what they pay taxes we take at what provisions they set -- And that basically shrinking JPMorgan's pretax pre provision earnings that that was made him a hypocrite fell 11% year on year in the senate -- -- big picture though I mean -- we think this is a this settlement we think it's a good thing is that the settlement is good for the system as a good for the banks that. Not great for the banks and ultimately. -- -- but. I think -- that the best thing about this is that we've seen banks paying for. The mistakes. All the legal issues when it according -- -- it was very true to say we have not committed to breaking I don't know it was artistic and in this debate they laid out how it all happened. That's it we're not saying -- in the league. At this and that we -- -- the facts as laid out but its -- it way -- always saying we're not gonna say that we neither agree nor disagree overloaded or whatever this is the site if and you has yet. The banks -- -- to -- to realize that they are in the foreign on and should be when they do things from when -- buying banks that -- -- these things that the moment they do things wrong themselves it's a big. Big sign I think these things -- -- now he had to say and is another risk. Taxes are shareholders and big banks -- and selects. Need to faction and its audit that we need to accept miniscule payouts and exhausting billion dollars down the floor -- five for JPMorgan. We can look forward Olympic spots for other banks as well. Will be following that story and others and stay tuned for more breaking news tomorrow.