That's enough to give each of the division’s 25,884 employees $269,703, according to figures posted Friday on the New York-based company’s website. For the same period last year, the unit set aside $7.71bn to pay traders, dealmakers and other personnel, or $289,611 for each of the 26,615 unit staff.
The bank set aside $2.07bn in the third quarter to pay investment-bank employees, or 33% of that division’s revenue. JPMorgan’s investment bank had 669 fewer people than at the end of the second quarter, according to the disclosure.
Reuters reports that Richard Lipstein, a Managing Director with the recruiting firm Gilbert Tweed International, said that after months of job cuts across Wall Street, management has a greater ability to cut workers' pay because they cannot find other jobs as easily.
'In the battle between labor and management on Wall Street, management may finally be getting the upper hand', said Lipstein. 'If tons of people leave, they'll lose it. But given the environment, it's tough to imagine that they're going to walk out the door unless they feel egregiously underpaid'.
Finally, Bloomberg reports that JPMorgan Chase, whose CIO trading loss of more than $6.2bn was fueled by the adoption of a flawed mathematical formula that understated the risks, is trying yet another one.
JPMorgan said that it started using a new formula to judge the risk of the derivatives position, at least the third such model it’s used this year, when it moved most of the contracts to the investment-bank unit. The new analysis cut the firm’s calculation of overall value-at-risk, or VaR, by $36m, or 24%, to $115m in the third quarter.