JPMorgan To Increase Litigation Reserves As Legal Issues Mount

JPMorgan Builds Cash Pile As Legal Troubles Mount
JPMorgan Chase Chairman and CEO Jamie Dimon testifies during a US House Financial Services Committee hearing on Capitol Hill in Washington, DC, June 19, 2012, about JPMorgan Chase's trading loss. AFP PHOTO / Saul LOEB (Photo credit should read SAUL LOEB/AFP/GettyImages)
JPMorgan Chase Chairman and CEO Jamie Dimon testifies during a US House Financial Services Committee hearing on Capitol Hill in Washington, DC, June 19, 2012, about JPMorgan Chase's trading loss. AFP PHOTO / Saul LOEB (Photo credit should read SAUL LOEB/AFP/GettyImages)

(Reuters) - The chief financial officer of JPMorgan Chase & Co

Speaking at an investor conference, CFO Marianne Lake declined to say by how much the company will increase the legal reserves. She said the expense would be greater than the $1.25 billion of mortgage reserve releases she expects in the third quarter.

JPMorgan faces a raft of government investigations and private lawsuits, including actions over its marketing of mortgage bonds before the financial crisis and its "London Whale" derivatives debacle last year that cost the company $6.25 billion.

Lake also said the company will lose money on its mortgage production business in the third and fourth quarter of this year because its refinancing loan volumes have fallen faster than it has reduced its costs.

(Reporting by David Henry in New York; Editing by James Dalgleish)

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