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Legal claims to JPMorgan cash pile up

Wednesday, August 28, 2013 - 00:59

Aug. 28 -U.S. regulators are lining up in a pursuit to get their hands on JPMorgan Chase's money through fees and settlements ranging from $80 million to $6 billion, according to latest media stories. Conway G. Gittens reports.

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JPMorgan Chase is used to breaking out the calculator to add up profits, but these days the bank is counting up the growing list of potential fines and fees. The latest: a proposed $500 million to $600 million penalty, according to the Wall Street Journal, tied to the alleged cover up of trading losses last year dubbed the "London Whale." And an $80 million slap on the wrist for alleged mis-dealings with credit card users, as reported by the New York Times. Regulators are questioning if the bank sold identity-theft protection without much protection using a third-party vendor. But those are peanuts compared to the at least $6 billion, sources say is being sought as payback for subprime mortgage bonds sold to Fannie Mae and Freddie Mac. Governments and regulators smell blood in the water and JPMorgan is preparing for a fight. It's planning to beef-up a secret legal fund by nearly $7 billion.

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Legal claims to JPMorgan cash pile up

Wednesday, August 28, 2013 - 00:59