Source: New York Post
JPMorgan's Jamie Dimon's not sweating the bad mortgage problem hanging over the bank.
The chief executive said yesterday that JPMorgan has set aside enough in reserves to deal with potential settlements and litigation related to charges that the bank improperly documented home mortgages.
So far, JPMorgan has set aside $1.5 billion in so-called litigation reserves related to potential legal battles tied to improper foreclosures, Dimon said during a fourth-quarter call with analysts to discuss its results.
The reserves were earmarked for legal expenses linked to private label disputes.
Dimon said that the battle between banks, regulators and private companies over mortgages could be an ugly one lingering for years.
JPM's move to set aside money comes more than a week after Bank of America and Ally Bank agreed to pay hefty sums to settle claims with mortgage giants Fannie Mae and Freddie Mac that they improperly originated mortgages during the housing boom.
URL to original article: http://www.housingwire.com/2011/01/17/mortgage-mess-not-a-concern
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