JPMorgan's Legal Headaches May Cost More Than Expected

The transcript discusses the ongoing investigations into currency manipulation involving banks, particularly JP Morgan. It highlights the financial implications, with a worst-case scenario estimate of $5.9 billion in settlements. The discussion touches on the cultural issues within Wall Street and the regulatory environment, suggesting that fines and settlements have become a norm. The Justice Department's role in enforcing compliance and the banks' failure to implement effective internal controls are also examined.

What is the estimated worst-case financial impact of the currency manipulation investigation on the bank?

• 10 billion

• 7.2 billion

• 5.9 billion

• 3.5 billion

What has JP Morgan consistently done in response to financial investigations?

• Reduced employee salaries

• Budgeted conservatively

• Increased shareholder dividends

• Ignored the investigations

What is becoming a 'way of life' in the banking industry according to the transcript?

• Increased customer satisfaction

• Rapid technological advancements

• High employee turnover

• Frequent fines and settlements

What message has the Justice Department made clear to banks?

• They will support bank mergers

• They will enforce strict compliance

• They will increase interest rates

• They will reduce penalties

How much have banks paid in settlements since 2010?

• 15 billion

• 20 billion

• 23 billion

• 30 billion