Compliance costs for JPMorgan to double in 2014, hitting US$2 billion
December 13, 2013, 12:13 am TWN
NEW YORK -- U.S. banking giant JPMorgan Chase expects to spend US$2 billion in annual compliance costs starting in 2014, chief executive Jamie Dimon said Wednesday.
The spending is double what the bank previously projected and comes on the heels of several major settlements over alleged law and banking rules violations with regulators.
“The US$2 billion for the most part is permanent,” Dimon said at a Goldman Sachs conference. “It's not going to go away.”
Dimon said the spending would go to hire compliance staff, conduct training, employ auditors and take other steps to ensure the U.S.' largest bank by assets operates in line with the rules. He expects overall expenses to be lower in 2014 than in 2013, in spite of the higher compliance costs. “So we will find a lot of efficiencies,” he added.