Tomahawk, WI 9/25/2013 (BasicsMedia) – JPMorgan Chase & Co (NYSE:JPM) has been forced to think about making a settlement with US authorities to see if this will bring to an end the many probes. The company has been facing a number of probes in the recent past which have threatened its very existence. The company is now embarking on paying close to $3 billion with the intention of seeing whether this will be enough to bring to an end its criminal and civil cases. Federal and state prosecutors have been on JPM’s neck, and probably the company is tired of all these unending lawsuits.

 Perhaps the biggest source of headache for JPM and which has led to this unprecedented course of action has been informed by the fact that the federal and state investigators wanted to prosecute the company for its role in mortgage activities. However, of more interest is that the Justice Department is reported to have rejected this amount of money. According to the U.S Department of Justice, this amount of money is just too little based on the nature and seriousness of the cases facing JPM. It now remains to be seen whether JPM will increase its offer or not.

 JPM Might Have to Increase its Offer

 It is highly likely that JPM will have to pay out a much larger sum of money than it has offered to the U.S Department of Justice thus far. This Justice Department wants to look at all other cases and investigations involving JPM and if it succeeds in this, then we can look forward to JPM offering more money than it has so far done. The fact that the bank has thus far paid out close to $1 billion as settlements in other cases, means that 2013 is a year when the bank has lost or will probably lose more money since the 2008 global financial chaos, which affected JPM too.

The total number of probes, cases and investigations facing JPM are seven. They are wide ranging and include China corruption probe with regard to its hiring practices, to the energy trading allegations. If these cases are allowed to go on, the bank is likely to be affected in terms of reputation, and the employees’ morale will be at an all time low. The bank would also have to spend a lot of time fighting these allegations in court, which it is time it could have spent in doing other things which bring it more money.

 JPM Must Tread Carefully in the Offer it Makes

 However, JPM is in great pain and whatever it decides, it has to tread carefully. While it needs to offer an amount which Justice Department will be satisfied with, it must do so without opening doors for further litigations against it. This is perhaps the greatest challenge it faces, and must tackle as soon as possible. But at least, the $3 billion offer to the Justice Department is an indicator that the bank wants to bring an end to all these legal matters and concentrate on offering banking services. Let’s not forget that the bank’s latest net income is $6.5 billion.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.