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Under Investigation, JP Morgan Increases Potential Legal Reserves More than $2 Billion

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JP Morgan Chase recently added $2.4 billion to its estimate fo the
amount of legal costs it is facing, from investigations into possible
currency manipulation and other legal concerns.  JP Morgan Chase
revealed the additional funds it is setting aside in a recent
securities filing.  JP Morgan Chase is among more than a dozen giant
banks that are involved in inquiries that they may have been buying
and selling currencies at prices colluded with one another, to
manipulate the prices.  This is the type of collusion and manipulation
that occurred in the LIBOR interest rate scandals.

JP Morgan Chase is a frequent critic of any regulation and controls on
its power to act in the market.  It is incredibly inconsistent for
such a proponent of the free market and the power of the marketplace
to (again) be caught up in allegation of manipulations and collusion
on the market.  Such collusion and manipulation are pretty ways of
saying that JP Morgan Chase, and the other banks involved, just did
not want to be in the free market, because there was too much risk and
uncertainty.  Motivated by naked greed, these allegations of collusion
and manipulation show the means that some will be driven to, to make
what are the highly desired profits.  It profoundly undercuts the
statements of JP Morgan Chase as to the power and justice of the
market, when its actions show that the market is fine for its
customers, just not for JP Morgan Chase itself.

The amounts involved in the legal reserves, too, are simply
staggering, but not to JP Morgan Chase.  These giant financial
companies are so large that even a few billion dollars doesn’t really
affect the company’s performance (much) or the wealth of bonuses that
high level employees will receive (more on that soon).  Because of the
many multi-billion dollar scandals affecting JP Morgan Chase, and the
vastness of its operations combined with the baseness of the
accusations, the credibility of the stockbroker activities must be
questioned, too.


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