JPM’s financial resilience, however, didn’t stop its top lawyer, Stephen Cutler, from denouncing ever-larger penalties imposed by the Securities and Exchange Commission, presciently explaining, “ We should all be concerned because at a certain point people become immune to the numbers.” Cutler ought to know. While it doesn’t help nonprofits to be legal scofflaws, paying out $13 billion in penalties doesn’t hurt JPMorgan Chase much, given its market capitalization of $217.85 billion as of the end of last week and its continued strong revenues into 2013, even after taking the hit for extraordinary legal expenses. As the following chart shows, despite the cascading federal and international investigations of Jamie Dimon’s firm, the JPM price on the New York Stock Exchange has been healthy over the past year:
#Principal writedown plus
Department of Justice.Īfter my telling a relative that JPMorgan Chase, as a result of its record $13 billion fine plus several other pending investigations, was a corporate criminal, she responded that the company’s stock was nonetheless doing fabulously. For the likes of JPMorgan Chase, billion-dollar penalties seem like minor traffic road bumps, but maybe there’s something that nonprofits will be able to do with whatever JPM is being forced to shell out after the announcement of a huge settlement negotiated with the U.S. Nonprofits face desperate searches for the resources needed for their programs, but some big corporations don’t seem to face anything comparable, even after they are hit with massive penalties and fines by federal, or even international, regulators.
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