JPMorgan Settlements Nearing Completion
JPMorgan Chase Bank has been dealing with a series of court cases lately, and it seems that two of them are finally coming to a close. One case involves the company’s credit card collection practices, and the other deals with the sale of identity theft protection.
The Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency plan to fine JPMorgan less than $80 million for both counts. The bank is also near an agreement with U.S. and U.K. regulators who have been looking into a $6.2 billion trading loss from last year.
JPMorgan has already boosted its legal reserves by more than $1.5 billion this quarter to handle what is being referred to as a “a crescendo of activity in past weeks,” said Chief Financial Officer Marianne Lake.
Lake also told investors that the bank has added 3,000 new employees to improve internal controls and compliance. The company stopped selling the identity theft programs in question back in 2011 and refunded money to the affected consumers.
In the weeks to come, it looks like JPMorgan may settle these court cases, which will surely be a relief for the bank, its staff and its customers.