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 morning trading.
The bank said it made money trading every day of the first quarter. Its average daily trading revenue was $112 million.
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