Boston, MA 12/20/2013 (wallstreetpr) – The question that many are asking is whether JPMorgan Chase & Co. (NYSE:JPM), the largest lender in the U.S., can survive the string of lawsuits it is presently facing. The bank has already paid more than $20 billion in settlements, as a resultant of the much-criticized mortgage-backed securities sold to investors.
In the recent quarter, the bank reported red, in as many years as legal costs ate into its profits. JPMorgan Chase reacted to this, by announcing a boost in its cash reserves to meet the growing legal needs.
But, if the bank is of the opinion that it had seen enough in terms of suits, it would be in for a surprise. The bank is facing accusations in Mississippi over its handling of credit card debt collections. It is also facing possible suit in Mississippi, for what the state’s Attorney General termed as “knowingly and willfully making false statements” on its credit card practices.
In a dramatic turn of events, the attorney paints in graphical details, how JPMorgan Chase & Co. (NYSE:JPM) harassed a woman in the state, over a credit card debt that had long been settled. As a result, the episode damaged the woman’s credit reputation, and denied her a mortgage-refinancing loan.
The Mississippi lawsuit against JPMorgan Chase involves in around 800 customer cases. Mississippi becomes the latest state to take the bank to task, over its credit card practices. The first such case against the bank was filed by the state of California. It is reported that the bank could face more suits from at least 15 other states on its credit card collection practices.
JPMorgan Chase & Co. (NYSE:JPM) is the leading bank in the U.S. with global operations. The bank is also under investigation by Federal regulators over its hiring practices in Asia in which the company is accused of unprofessional practices, if found culpable, the bank could face huge monetary fines.
The stock of JPMorgan Chase & Co. (NYSE:JPM) is currently trading around $57.23 per share and has a total shares outstanding of 3.76 billion.
