JP Morgan Chase may face material fines and legal costs of $4.5 billion from a wide-ranging probe into the industry’s foreclosure practices, Financial Times reports. The New York-based bank was a defendant in more than 10,000 legal proceedings at year-end 2010.
The U.S. Securities & Exchange Commission has asked banks to disclose forecasts for legal losses under certain worst-case scenarios. The bank has not disclosed its current legal reserves, though it set aside additional funds in 2010.
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