JPMorgan buried underneath legal problems
Lawsuits put dent in bank reserves
JPMorgan Chase (JPM) continues to hack away at its growing legal problems, as the costs begin to put a brutal dent in the mega bank’s reserves. But how much more can the bank take? MarketWatch has more:
That’s impossible to predict, of course, but one thing is certain: The bank is aware that the cost is almost certainly mounting.
As pointed out by Charles Peabody of Portales Partners, J.P. Morgan said in a regulatory filing this summer that it believes it could suffer as much as $6.8 billion worth of lawsuit-related losses over and above the reserves it has set aside for such costs.
Analysts have been trimming their expectations for J.P. Morgan’s third-quarter earnings. They now expect the bank to earn $4.8 billion in the third quarter, according to a poll by FactSet. That’s down from $5.4 billion at the end of August.