September 11, 2013 / 10:36 PM / 5 years ago

JPMorgan near settlement of credit card probes: source

A sign stands in front of the JPMorgan Chase & Co bank headquarters building in New York, March 15, 2013. REUTERS/Lucas Jackson

(Reuters) - JPMorgan Chase & Co (JPM.N) may settle probes by U.S. regulators into its credit card debt collection practices and sales of identity-theft products within weeks, according to a person familiar with the matter.

JPMorgan, the biggest bank based in the U.S., had previously disclosed the credit card and identity-theft product investigations. Reuters’ source, who declined to be identified by name, said talks about a settlement have been on and off for months but have heated up recently.

A fine of less than $80 million for both matters is planned by the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau, according to Bloomberg News, which on Wednesday reported the possibility of a settlement being reached as early as next week. The report cited two people with knowledge of the matter.

JPMorgan could also settle soon a long-running government investigations into wrongdoing in its $6.2 billion “London Whale” derivatives loss last year, the source told Reuters.

On Monday JPMorgan chief financial officer Marianne Lake said at an investor conference that the company will boost its legal reserves this quarter by more than $1.5 billion as it tries to resolve multiple government investigations involving businesses including sales of mortgage securities, commodities and the setting of interest rate benchmarks.

Lake said the additional legal expenses are being booked in light of a “crescendo of activity in past weeks” involving the investigations.

Reporting by David Henry in New York; Editing by Cynthia Osterman

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below