JPM sets aside $1.5B more for legal woes

The ꦉprice tag 💟continues to rise on Jamie Dimon’s legal woes.

JPMorgan Chase is adding $1.5 billion to its legal reserves this quarter as it f𝄹aces a laundry list of𒀰 federal investigations and lawsuits on everything from its energy trading and mortgage-backed securitizations to bribery of Chinese officials.

“There’s 🌜been a crescendo of activity in past weeks and we a🧜re reacting to that where it makes sense,” chief financial officer MarianneLake said at a conference this week.

The ba🌳𓄧nk declined to comment beyond Lake’s statement.

Last month, Dimon’s JPMorgan said in a filing that its legal liabilities could be $6.8 billion grea♍ter than what it has already reserved for. A year ago, JPMorgan estimated that number to be $5.3 billion.

Putting $1.5 billion more in the kitty would help offset the $6.8 billion that is unreserved for. The bank doesn’t report the total amount of current lit𝐆igation reserves.

Last year, litigati🍸on-related costs were $5 🦂billion.

But this year could be even b😼igger. In its recent filing, the bank said it faces six separate investigations from the Justice Department, including three new ones.

Last month, JPMorgan paid $410 million to settle with the Federal Energy Regulatory Commission regarding its energy trading. FERC said the bank’s trading activities resulted🦹 in grid operators paying tens of millions of dollars more than would have otherwise occurred.

The bank settled with FERC without admitting or denying wrongdoing, then 🍬said it was planning to exit the entire physical commodities business, including energy trading.

The matter is far from over. The bank reportedly could face a🌟 criminal probe from the Department of Just🤪ice, and several lawmakers are looking into the matter.

JPMorgan also disclosed a government probe into its mortgage securitizations. Regulators are continuing to look at that business, specꦬifically with regard to what JPMorgan told the Federal Housing Administration about the bonds it was selling.

The FHA is an insurer for mor🔴tgage-backed securities.

Jason Goldberg, a Barclaꦰys bank analyst, has estimated that investors lost $48 billion on JPMorgan’s housing bonds, many of which were made to subprime borrowers.

JPMorgan last month also revealed it has also been questioned by an anti-bribery unit of the 🅠Securities and Exchange Commission about its hiring practices in 🐻Hong Kong.

mcelarier@btc365-futebol.com