Bernard Madoff case cuts JPMorgan Chase net income by 7.3% in Q4 2013

JPMorgan Chase has reported a 7.3% drop in profit for Q4 2013 after legal costs relating to the fraudster Bernard Madoff dented earnings gains.

Net income fell 7.3% for the fourth quarter to $5.3 billion, from $5.7 billion in the final quarter of 2012.

JPMorgan said one-off items had damaged income after tax by $1.1 billion.

Separately, Wells Fargo, the US’s biggest mortgage lender, said fourth quarter profits rose 11% to $5.4 billion.

Wells Fargo cut thousands of jobs in the second half of the year in order to boost earnings.

JPMorgan was Bernard Madoff’s principal bank and their business relationship dated back to the 1980s.

Bernard Madoff, 75, is currently serving a 150-year prison sentence in the US after being found guilty of defrauding investors.

Last week, JPMorgan agreed to pay $2.6 billion to settle government and private claims resulting from its handling of Bernard Madoff accounts. The bank was accused of not reporting its concerns about Bernard Madoff’s investment scheme.