JPMorgan Chase & Co. In Settlement Talks WIth DOJ On Forex Probe

JPMorgan Chase & Co.

disclosed a criminal probe Monday by U.S. prosecutors of foreign exchange operations. J.P. Morgan said it holding settlement talks with both the Department of Justice and other authorities regarding its spot foreign exchange trading activities, adding that a settlement is uncertain. The disclosure, in its latest Form 10-Q, marks the first official confirmation from the bank of potential criminal sanctions, although it had earlier acknowledged receiving "inquiries" from U.S. government authorities regarding the foreign exchange trading business. Also Monday, the company disclosed "various civil investigations" regarding its foreign exchange business are underway by U.S. banking regulators, the Commodity Futures Trading Commission, the U.K. Financial Conduct Authority and other foreign governments. JP Morgan also boosted its estimate of potential losses from its full range of current legal proceedings to $5.9 billion, from an earlier $4.6 billion. The estimate covers a morass of proceedings outlined in its recent form 10-Q, most of which are long standing.