JPMorgan's $13 Billion Settlement: Let's Crunch the Numbers

JPMorgan Chase’s (JPM) tentative $13 billion settlement with the Department of Justice for engaging in misleading mortgage practices would be the largest fine ever paid by a bank to the federal government.

The settlement would end civil claims over the sale of the bank’s mortgage bonds—but would not exempt JPMorgan from potential criminal liability. If a final agreement is reached, that $13 billion financial hit will be the latest in a series of penalties the bank has paid out over the last three years.

The likely settlement with the Justice Department wouldn’t gravely harm a giant institution such as JPMorgan. But it will hurt. Here’s some perspective:

The $13 billion fine would be equal to …

• 13 percent of JPMorgan’s FY 2012 revenue.
• 17 percent of its FY 2012 U.S. revenue.
• all of the company’s FY 2012 revenue from EMEA and Latin America.
• 93 percent of its FY 2012 revenue from mortgage banking.
• 53 percent of its 3Q13 revenue.
• 130 times CEO Jamie Dimon’s compensation from 2008 to 2012.
• 17 times the value of 2012 salaries at the SEC.
• 41 times the value of Dimon’s JPM stock holdings.
• the last FY revenue of more than half the members of the S&P 500.
• 95 percent of consumer borrowing in August.
• the GDP of Albania.

Glassman is a writer and data journalist for Bloomberg Businessweek in New York.

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    (JPMorgan Chase & Co)
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