JPMorgan Volume collapses, CrossCountry accused of racketeering

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👀 The end of non-competes?

Employees reluctant to look for new gigs due to noncompete clauses have the FTC in their corner. The agency has proposed banning both new and existing noncompetes nationwide.

A noncompete clause is a contract that prevents someone from working for or starting a competing business if they leave their current job, voluntarily or not. Usually, they expire after a period of time (e.g. one year) and come with geographic boundaries.

Some states, including California and North Dakota, have already banned them. The FTC argues that they trap workers and decrease competition, resulting in lower wages marketwide and a lack of new business, entrepreneurship, and innovation.

Noncompetes affect ~20% of US workers and banning them could increase US workers’ earnings by ~$300B annually.

📉 Fewer mortgage loans for JPMorgan in Q4

It looks like big banks like Wells Fargo, JPMorgan, and Bank of America had a rough time in the mortgage market in the last quarter of 2022. They struggled more than the overall market, with large drops in origination volume and margins.

At JPMorgan, the fifth-biggest mortgage lender in the country, origination volume totaled just $12 billion between July to September, a decline of 45% compared to the prior quarter, and down 71% in comparison with the third quarter of 2021.

In other news: JPMorgan accuses founder of faking 4m+ accounts

👨‍⚖️ American Mortgage Network accuses CrossCountry of racketeering

American Mortgage Network (AmNet) is going after CrossCountry in court, accusing them of racketeering and 10 other counts in a lawsuit filed in Georgia. They also named former employee Spencer Thomas and CrossCountry manager William Myers as defendants.

The lender alleges CrossCountry Mortgage used a "transition desk" of dedicated staff to poach one of its branch managers and divert loans to the competitor.

This isn't the first time CrossCountry has faced similar accusations, but what sets this lawsuit apart is that AmNet is also charging them with a civil count under the Racketeer Influenced and Corrupt Organizations Act (RICO) - a law typically used for criminal enterprises. 

🥛 Meme of the day

🧠 How to: Be more productive, using a twist on Albert Einstein’s law of focus.

☀️ See y'all on Wednesday!

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