Investigators Find Another Skeleton in JPMorgan’s Closet
“As of June 30, 2013, the Firm and its subsidiaries are defendants or putative defendants in numerous legal proceedings, including private, civil litigations and regulatory/government investigations. The litigations range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members.”
It’s no secret that major financial institutions like JPMorgan (NYSE:JPM) are constantly swamped in litigation. The note above was pulled from the firm’s most recent 10-Q quarterly filing with the Securities and Exchange Commission, in which JPMorgan estimated the range of possible losses associated with its ongoing and pending legal proceedings to be between $0 and $6.8 billion more than what it had already set aside. The high end of this range is up from $6 billion in the previous quarter. The firm set aside $600 million in additional litigation reserves (9 cents per share after tax) in the second quarter.
Over the past few weeks alone, JPMorgan agreed to pay $410 million in penalties to the Federal Energy Regulatory Commission for allegations of energy market manipulation in California and the Midwest, was accused of fraudulently masking the risk of financial instruments in Italy, and had two board members resign in relation to the firm’s $6.2 billion London Whale Trade fiasco.