JPMorgan Chase & Co. said it faces up to $4.5 billion in legal losses, in excess of its established litigation reserves, should its worst-case legal scenario occur.
The bank made the disclosure in its annual filing with the Securities and Exchange Commission on Monday, saying the additional losses represent a range of reasonably possible losses.
JPMorgan Chase already accounts for what it considers a reasonable estimate of losses in a litigation reserve, a number it does not make public. The $4.5 billion would be a worst-case scenario on top of that number. It said the additional losses could be zero, though it could also go higher as JPMorgan Chase cannot yet make estimates on the more than 10,000 legal proceedings it faces. The SEC has requested the additional disclosures on what companies could potentially face on legal losses on top of what they have set aside.