JP Morgan’s $23 Billion Legal Reserve Is Ridiculous

JP Morgan ($JPM: no positions) has accumulated a legal reserve of 23 Billion dollars.   That is absolutely absurd.    Ludicrous.   A sign that there is something majorly wrong with The System.

As the WSJ notes, JPM’s reserve is bigger than the market cap of 2/3rds of the S&P 500 companies.  As I noted 4 years ago, there was a time in the not-so-distant past when the original Too Big to Fail bailout of Long Term Capital Management came in at a measly $4 billion.

Any company that has a reserve against potential expected legal costs of 23 Billion dollars should not exist in its current state.  I don’t know how else to say it.  It’s the number one sign for me that things are screwed up.

-KD

 

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