JPMorgan near settlement of credit card probes: source

Wed Sep 11, 2013 6:34pm EDT

A sign stands in front of the JPMorgan Chase & Co bank headquarters building in New York, March 15, 2013. REUTERS/Lucas Jackson

A sign stands in front of the JPMorgan Chase & Co bank headquarters building in New York, March 15, 2013.

Credit: Reuters/Lucas Jackson

(Reuters) - JPMorgan Chase & Co (JPM.N) may settle probes by U.S. regulators into its credit card debt collection practices and sales of identity-theft products within weeks, according to a person familiar with the matter.

JPMorgan, the biggest bank based in the U.S., had previously disclosed the credit card and identity-theft product investigations. Reuters' source, who declined to be identified by name, said talks about a settlement have been on and off for months but have heated up recently.

A fine of less than $80 million for both matters is planned by the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau, according to Bloomberg News, which on Wednesday reported the possibility of a settlement being reached as early as next week. The report cited two people with knowledge of the matter.

JPMorgan could also settle soon a long-running government investigations into wrongdoing in its $6.2 billion "London Whale" derivatives loss last year, the source told Reuters.

On Monday JPMorgan chief financial officer Marianne Lake said at an investor conference that the company will boost its legal reserves this quarter by more than $1.5 billion as it tries to resolve multiple government investigations involving businesses including sales of mortgage securities, commodities and the setting of interest rate benchmarks.

Lake said the additional legal expenses are being booked in light of a "crescendo of activity in past weeks" involving the investigations.

(Reporting by David Henry in New York; Editing by Cynthia Osterman)

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Comments (1)
SubramanianV wrote:
We read about these Too Big Banks paying out fines in hundreds
of millions of dollars for violating of laws governing them.
Should not the same privilege be available to ordinary citizens
also, so that whenever they are charged with any criminal
activity they can plead no contest, negotiate the amount of
fine, pay it and be done with it? They also get tax deduction
for the fine they pay, I believe. If the justification for big
business is that they are paying the fine so as to conserve
their funds, energy and focus on their business, a man in the
street is more justified in taking recourse to that argument.
Why only a corporate criminal should be let loose on the society
after parting with a part of the loot, enabling to loot more? When
government and judiciary stretch the laws so much to help the rich,
don’t say we are ruled by a government of the people, by the
people and for the people. Replace ‘people’ with ‘rich’.

Sep 11, 2013 7:29pm EDT  --  Report as abuse
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