REUTERS/Gary Cameron
This is separate from the $13 billion fine the bank will be paying for failing to warn investors about risks in mortgage backed securities trades.
The same investor group also extracted an $8.5 billion settlement from Bank of America, to compensate investors for mortgage bonds they issued before the collapse of the housing market. That settlement is now before a judge for final approval.
J.P. Morgan has been prepared for this payout since the last quarter, as it set aside over $9 billion to cover its legal fees. According to the Wall Street Journal, it has now set aside a $23 billion to cover future legal costs.
The bank is also still on the hook for criminal liability related to its mortgage business. The charges bring into question whether JPMorgan misrepresented the quality of the mortgages it securitizing and selling to investors.