A filing made by the largest U.S. bank, JPMorgan, with the Securities and Exchange Commission (SEC) has revealed that the company is in the process of negotiating new legal settlements with authorities. The probes are related to the firm’s foreign exchange business.
The bank has detailed that its negotiations with the Federal Reserve and the U.S. Justice Department are close to conclusion. It hasn’t publicized any specific estimates about the costs related to litigation settlements, however JPMorgan said that the total amount of litigation losses may reach $5.5 billion as of the end of the first quarter.
Total amount of litigation losses may reach $5.5 billion
The figure is lower by close to $300 million from previously publicized figures.
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JPMorgan’s practices under investigation are not only related to trading on the foreign exchange market, particularly around the fixing, but also to the firm’s sales methods.
The Federal Reserve has opened a civil investigation into the matters, while the U.S. Department of Justice opened a criminal probe.
In addition, the bank publicized that the U.S. SEC was investigating the company’s sale and use of its own products, including JPMorgan mutual funds and others in its wealth management division.
According to the regulatory filing, the largest U.S. bank is fully cooperating with all authorities involved in the probes.
Back in January this year, JPMorgan became the first bank to settle a U.S. antitrust lawsuit. The company was accused in conjunction with another 11 banks of have been manipulating the foreign exchange market for years, causing their clients substantial losses in the process. The largest U.S. bank has agreed to pay about $100 million.