JPMorgan $13B deal may not end bank's legal woes

WASHINGTON (AP) — The $13 billion settlement that JPMorgan Chase agreed to Tuesday is the largest ever between the Justice Department and a corporation. Yet it isn't likely the end of the bank's legal troubles over the risky mortgage securities it sold before the financial crisis.

JPMorgan has several lawsuits pending against it and the mortgage businesses it bought from Bear Stearns and Washington Mutual in 2008. There's also an ongoing criminal investigation led by the office of U.S. Attorney Benjamin Wagner in Sacramento, Calif.

The bank may be negotiating or litigating for years and has set aside $23 billion to cover those costs. Last month, in a filing with the Securities and Exchange Commission, it said it may need up to $5.7 billion more.

In a conference call with investors Tuesday, JPMorgan's chief financial officer, Marianne Lake, said it was "too early" to discuss whether the bank would have to add to its legal reserves.

"These things are never 'one and done,' and they'll likely be more civil charges," said Erik Oja, an equity analyst with Standard & Poor's who covers the U.S. banking industry. But, Oja added, "these sort of settlements really do help clear away most of the issues."