by Eric Dubin, Silver Doctors:
JP Morgan is preparing to spend $4 billion on litigation reserves this year, with $1.5 billion devoted to managing risk and complying with regulations. This will enable a 30% increase in risk-control staffing according to the company.
The $2.5 billion balance will flow into it’s litigation reserves for the second half of the year, which strongly implies J.P. Morgan is expecting further legal battles and the need to set aside funds to cover settlements.
The Wall Street Journal online is reporting “Embattled J.P. Morgan Bulks Up Oversight.“ Following a string of scandals, it appears regulators have finally started to do their job, at least when it comes to the massive “London Whale” and energy manipulation scandals.
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