* Probe involves sales of collateralized debt obligations
* Bank's Q1 average daily trading revenue $112 mln
* Litigation expenses decline
(Adds estimate of losses from legal proceedings, first-quarter
NEW YORK (Reuters) - JPMorgan Chase & Co is
in "advanced discussions" with the Securities and Exchange
Commission to resolve a probe into its role in selling certain
collateralized debt obligations, the bank said.
The second-largest U.S. bank made the statement in a
quarterly filing with the SEC Friday.
JPMorgan previously said it had received "a number of
subpoenas and informal requests" from federal and state
authorities over CDOs and mortgage-backed securities.
In the new filing, the bank estimated its maximum possible
losses from legal proceedings, in excess of established
reserves, at $4.5 billion as of March 31, unchanged from its
estimate for Dec. 31.
The bank's litigation expense fell in the first quarter to
$1.1 billion from $2.9 billion a year earlier, largely due to
lower additions to its litigation reserve, according to the
filing. Litigation expenses in the fourth quarter were about
$2.2 billion, earlier company reports indicate.
JPMorgan shares were up 0.7 percent at $45.50 in late
The bank said it made money trading every day of the first
quarter. Its average daily trading revenue was $112 million.
(Reporting by David Henry; editing by John Wallace, Dave
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