Senior executives at JPMorgan Chase is pressuring managers across the bank to cut costs, after disappointing revenue growth hurt profits, a source told Reuters on Wednesday. Morningstar Equity Analyst Jim Sinegal says JPMorgan Chase is now paying the price for its mistakes.

SHOWS: NEW YORK, USA (JANUARY 15, 2015) (REUTERS - ACCESS ALL)

1. MORNINGSTAR, EQUITY ANALYST, JIM SINEGAL, SAYING:

JOURNALIST ASKING JIM SINEGAL: 'So first let's talk about JPMorgan Chase, a lot going on there. This is the biggest U.S. bank by assets; legal costs over a billion dollars. What is going on at J.P. Morgan, this was not a good report to say the least?'

SINEGAL: 'Yeah, I think unfortunately for JPMorgan 2014 looks a lot like 2013. I think a lot of investors are looking forward to the end of legal costs, to rates going up and banks making more money this year, neither one of those things happened. JPMorgan actually had more in legal costs this year than it did last year. And I think to some extent it is hard to be patient with these banks, the situation has been going on for five, six, seven years now, I think people are just really getting tired of waiting for it to end.'

JOURNALIST: 'Are these legal costs just the new normal, because we used to think OK after this quarter, we are putting it behind us, we make these settlements, is this just going to be part of doing business now that investors need to factor in?'

SINEGAL: 'Yeah I think that has been part of my thesis for some time. What people forget is prior to the mortgage crisis the banks were not completely clean then. If you think back to the days of Enron, Worldcom, the settlement over self-side research, in some of the big investment banks. It is not the first time the banks have taken billions of dollars in charges; I think you heard Jamie Dimon allude to that on the call today. There is always some sort of problem that you have to factor in when you are thinking about legal expenses for these banks and I think unfortunately the market is coming to that realisation now that when these banks are so big, so complex, it is really hard to keep your nose clean across the board when you have $2 trillion in assets.'

JOURNALIST: 'Yeah Jamie Dimon in fact talked about the banks being under assault. Is that fair of him to say, I mean a lot of these problems are of their own making?'

SINEGAL: 'A lot of the problems are of their own making but along the regulatory side I think they are under assault to some extent. I think in the past quarter the capital requirements on J.P Morgan were raised and it's emblematic of this phenomenon where there is one more issue. Just when you think the banks have raised enough capital the capital requirements are raised. I think they are going to continue to be under attack for some time though, they are easy targets as you said, they have made a lot of mistakes and they are paying the price now and I think they are going to continue to pay the price for some time. They really have to justify their existence as large systemic institutions that really put American taxpayers to risk to a large extent.'