JPMorgan Chase & Co. : J.P. Morgan Lays Off 800 Mortgage Review Workers
01/14/2013| 01:16pm US/Eastern
J.P. Morgan Chase & Co. (JPM) laid off more than 800 contract workers who were retained to review mortgage foreclosures in the wake of the bank's new agreement with regulators to settle the investigation and end the review process, according to New York state and the bank.
The largest U.S. bank by assets cut 529 temporary employees at a facility in Brooklyn and another 310 in Florence, S.C., according to a layoff disclosure announcement released Monday by New York state and a spokeswoman for the bank.
The employees were hired on a temporary basis to review the bank's mortgage foreclosures under a settlement agreement with regulators probing abusive foreclosure practices in the aftermath of the financial and housing crisis. But that review process was halted last week after J.P. Morgan and nine other banks agreed to pay $8.5 billion to settle the matter and close down the review process.
J.P. Morgan's portion of the tab was nearly $2 billion, including a $753 million cash payment and $1.2 billion in credits for "foreclosure prevention actions" under the terms of the settlement. The bank reports fourth-quarter and full-year 2012 earnings Wednesday and will take a $700 million pretax charge related to the cost of the settlement.
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