JP Morgan Chase: These Expenses are Rising Fast
While JP Morgan Chase & Co (NYSE:JPM) reported a decline in third quarter earnings, it saw a $1.3 billion rise in new expenses from faulty mortgages and foreclosures. This adds to the $69 billion bill the five largest home lenders have incurred since 2007.
JP Morgan (NYSE:JPM) disclosed in its earnings report that it put aside $314 million to buy back defective loans and spent $1 billion in litigation costs related to the questionable mortgages. This brings the bank’s total to at least $17.6 billion. Costs continue to rise as borrowers, investors and states continue accusing banks of poor lending and foreclosures. This number could reach over $120 billion.
JPMorgan’s (NYSE:JPM) stock closed up 1.63 % to $33.67. Shares are down 20.67% year to date. The stock has traded in a 52-week range between $27.85 and $48.36.