J.P. MORGAN CHASE & CO. $52 - New York symbol JPM

J.P. MORGAN CHASE & CO. $52 (New York symbol JPM; Income Portfolio, Finance sector; Shares outstanding: 3.8 billion; Market cap: $197.6 billion; Price-to-sales ratio: 1.9; Dividend yield: 2.9%; TSINetwork Rating: Average; www.jpmorganchase.com) has agreed to pay a total of $920 million in fines to U.S. and U.K. securities regulators.

That’s because the bank failed to disclose the true amount of losses it incurred in 2012 on complex trades it used to hedge its portfolio of corporate bonds. These losses ultimately amounted to $6 billion. Morgan has since strengthened oversight over its trading operations.

The fine is equal to 14% of the $6.5 billion, or $1.60 a share, that Morgan earned in the second quarter of 2013. Unlike similar settlements, Morgan admitted that it broke the law. That will probably spur class-action lawsuits by shareholders who lost money in the wake of Morgan’s hedging losses. However, proving that the bank deliberately misinformed investors would be difficult.

Separately, Morgan will pay $80 million in additional fines and refund $309 million to credit card clients who paid for an identity theft plan they did not receive.

J.P. Morgan Chase is still a buy.

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