But this loss comes from something very specific: litigation. JP Morgan Chase expects so many lawsuits and regulatory actions in the coming months and so many fines and penalties that it is building up of a fortress of a fund to pay for it all, setting aside more than $9 billion last quarter alone, to create a settlement war chest of $23 billion. JP Morgan has already agreed to pay nearly a billion dollars in fines following last year's London whale trading loss. The bank is facing a laundry list of other legal problems stemming from everything from Chinese bribery allegations to whether it knew about Bernie Madoff's Ponzi scheme to Libor manipulation. And it's working out a potential $11 billion settlement with the government over mortgage-backed securities. The majority of those losses stem from Washington Mutual and Bear Stearns, two banks the government pressured JP Morgan to buy during the crisis.