Jamie Dimon surpasses mentor Sandy Weill in legal costs
Due to ongoing mortgage bond problems in addition to other legal woes, JPMorgan posted a $7.2 billion charge on Oct. 11. Meanwhile, Weill’s tenure at Citigroup left the bank with at least $5.5 billion in legal costs, which at the time was the most in history for a Wall Street firm.
Dimon’s reputation, burnished by more than $100 billion in profits and the rescue of failing lenders Bear Stearns Cos. and Washington Mutual Inc., has so far endured a $6.2 billion trading loss and accusations the firm manipulated U.S. power markets. Until his departure, Weill’s image also seemed to be immune to a series of scandals, according to Peter Henning, a law professor at Wayne State University in Detroit.
“Sandy Weill was the great architect who revived the American banking system and made it a global leader again,” Henning said. “And then all of a sudden it changes.”