It’s sad news for employees of the biggest US bank, JP Morgan when they announce on Tuesday that they are cutting 4,000 jobs this year to reduce their expense by $1 billion dollars. In addition, Marianne Lake, the bank’s new chief financial officer, stated that the company will also be raising its interest rates by 1 percentage point, and conclusion of expensive litigation related to the mortgage crisis – would boost the bank’s net income to their goal of $27.5 billion over time.
Though there have been progress made to slowly boost their bottom line, The company must still be wary after recently laying to rest the $6bn in trading losses racked up by a London-based trader nicknamed “the whale” from the prior year.
It’s understandable that business is business. Shareholders must be paid and the company (JP Morgan) must always look to their best interest, however think about those who had no options to find a better solution due to the results of poor investments. How will we as a community judge big banks like this ethically?