JP Morgan Chase says it will take about $1.3 billion pre-tax in charges for litigation related to Enron and the global research settlement announced late last month.
The bank said today it would establish a $900 million reserve for costs of various private litigation and regulatory inquiries involving Enron, including $80 million for the research settlement with state and federal authorities.
It said it would also take a pre-tax charge of $400 million in the fourth quarter as part of its settlement of an Enron-related surety bond dispute with insurers.
JP Morgan shares rose 5.5 per cent or $1.32 a share to $25.32 last night in New York.