Estimate for Legal Services Increased by JPMorgan Chase

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Summary: In a securities filing on Monday, JPMorgan Chase announced that it has increased its estimate for legal services relating to the investigation into the bank.

JPMorgan Chase noted a possible increase in legal costs during a securities filing on Monday, according to The New York Times.

  

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The bank said that it has increased its legal costs estimate by $2.4 billion, which is a possible sign that the investigation into the manipulation of the currency market is picking up steam.

To read more about JPMorgan Chase, click here.

In the filing, the bank also acknowledged that it is facing a criminal investigation from the Justice Department.

The investigation from the Justice Department could lead to criminal charges for at least one of the dozen banks involved in the United States and Britain.

The bank said the following in the filing: JPMorgan Chase is “currently engaged in discussions” with the Justice Department. “There is no assurance that such discussions will result in settlements.”

When the third-quarter earnings for the bank were released in October, the bank said it added $1.1 billion to its reserves for the legal department. The company said that the money was added to resolve the foreign exchange investigation.

The bank said that it might have to pay close to $5.9 billion more than its reserves.

Citigroup recently announced that it was adding $600 million to its legal reserves in order to handle the foreign currency investigation it faces. This new amount is in addition to the $950 million set aside in the third quarter of this year.

Read more about Citigroup here.

JPMorgan Chase has incurred legal expenses totaling $22.9 billion since 2010. This total includes the mortgage securities settlement of $13 billion paid last year.

Will JPMorgan Chase make another increase after this one? Use our poll below to share your thoughts.

Image credit: New York Times