JP Morgan Chase set aside $2.3bn (€1.85bn) in the second quarter to settle all outstanding litigation including cases linked to the bank's involvement in WorldCom and Enron. The move comes as the Wall Street bank saw investment banking profits fall heavily.

The post-tax charge in the second quarter saw JP Morgan record a net loss of $548m - its first since 2002 - compared to a net profit of $1.8bn a year ago. The results were compounded by a poor quarter from its investment banking division, where net profits of $703m in the three months to end of June were 37% lower than the first quarter and 32% down on the same period last year.