MOSCOW, November 4 (RIA Novosti) — US banking and financial giant JP Morgan Chase (JPM) is under criminal investigation by the US Department of Justice over its foreign currency trading, Bloomberg reported Tuesday.
The bank made the announcement in its regulatory filing on Monday, while the chief executive said the bank might need as much as $5.9 billion in legal proceedings costs, according to the news outlet.
“Such actions can have significant collateral consequences for a subject financial institution, including loss of customers and businesses," JPM was quoted as saying by Bloomberg.
“In recent months, U.S. government officials have emphasized their willingness to bring criminal actions against financial institutions,” the bank added.
According to a report on Financial News, several US and European banks have set aside funds in legal provisions for foreign exchange investigations as talks heat up with several banks and regulators. These banks include Barclays, Citigroup, HSBC and the Royal Bank of Scotland Group, all allocating an extra $600 to 800 million to litigation reserves.