Brooklyn Daily Eagle
Restaurants and other businesses in Downtown Brooklyn will be a little emptier this winter as J.P. Morgan Chase & Co. has started laying off more than 500 workers from its MetroTech offices.
The Department of Labor said on Monday that the bank will be laying off 529 workers at its Brooklyn mortgage section at 4 MetroTech over the next four months, and 300 more in Florence, South Carolina. The contract workers were reviewing foreclosure paperwork in the wake of the mortgage mess — a job made unnecessary after an agreement was recently reached between federal regulators and 10 of the nation’s largest banks.
According to Nasdaq, the ten banks agreed to pay $8.5 billion to settle the matter and close down the review process. J.P. Morgan's portion of the fine was nearly $2 billion. The funds are supposed to go to the banks' mortgage abuse victims.
DOL notes that the employees are not represented by a union and “the plant” is closing.
Last year the bank was criticized after failing to bring 5,000 jobs to the MetroTech Center, as it promised it would in return for $235 million in tax breaks and other subsidies, according to the Daily News. The bank said it was in compliance with the law, however, counting temporary and part-time workers.