What is the current status of the Enron litigation against JPMorgan Chase?

For the purported consolidated class action lawsuit by JPMorgan Chase stockholders and the shareholder derivative action against current and former directors, briefing on plaintiffs' appeals to the United States Court of Appeals for the Second Circuit is complete. In a separate action alleging claims relating to the Firm's role as Indenture Trustee, JPMorgan Chase Bank, N.A. filed a motion to dismiss the Amended Complaint, and the Court's decision is pending.

What significant legal developments occurred regarding IPO allocation litigation?

Plaintiffs filed second amended class action complaints in six class certification focus cases. JPMorgan Chase is a named defendant in two of these cases. The company's time to respond to the amended complaints was extended to November 9, 2007. Plaintiffs filed a motion for class certification on September 27, 2007, with underwriter defendants' opposition papers due by December 21, 2007, and class certification discovery is ongoing.

How much did JPMorgan Chase spend on share repurchases in the third quarter of 2007, and what is the remaining authorization?

In the third quarter of 2007, JPMorgan Chase repurchased 47.0 million shares for $2.1 billion at an average price of $45.42 per share. As of September 30, 2007, $6.4 billion of authorized repurchase capacity remained under the new stock repurchase program.

Are there any material changes to the company's internal controls or disclosure procedures reported?

The CEO and CFO certified that the Firm's disclosure controls and procedures were effective as of the end of the period. There were no changes in the Firm's internal control over financial reporting during the third quarter of 2007 that materially affected its effectiveness.

JPMORGAN CHASE & CO 10-Q Quarterly Report Q3 FY2007

Summary

This filing for JPMorgan Chase & Co. (JPM) for the period ending September 29, 2007, provides updates on ongoing legal proceedings and details share repurchase activities. While no new material information regarding market risk or changes in internal controls was presented, investors should note the status of significant litigations, including the Enron, IPO allocation, and Cash Balance litigations, with some awaiting court decisions or progressing through appeal processes. The company also provided details on its share repurchase program, highlighting significant repurchases in the first nine months of 2007. The company's management, including the CEO and CFO, certified the effectiveness of disclosure controls and procedures. No changes in internal control over financial reporting occurred that materially affected its effectiveness during the quarter. Investors should monitor the outcomes of the various legal proceedings as they may have financial implications. The share repurchase data indicates a substantial program underway, reflecting the company's capital allocation strategy.

Key Highlights

1Management, including the CEO and CFO, certified the effectiveness of disclosure controls and procedures as of the period end.
2No changes to the Firm's internal control over financial reporting occurred during the third quarter of 2007 that materially affected its effectiveness.
3Ongoing litigation updates are provided for several key cases, including Enron litigation, IPO allocation litigation, and In re JPMorgan Chase Cash Balance Litigation, with various stages of appeals, motions, and class certification reviews.
4A significant settlement in principle was reached in the American Express litigation, involving VISA and MasterCard banks, with VISA agreeing to pay approximately $2 billion over 4 years.
5JPMorgan Chase repurchased a total of 47.0 million shares for $2.1 billion in the third quarter of 2007.
6For the nine months ended September 30, 2007, the Firm repurchased 164.6 million shares for $8.0 billion.
7As of September 30, 2007, $6.4 billion of authorized repurchase capacity remained under the new stock repurchase program.

JPMORGAN CHASE & CO Quarterly Report for Q3 Ended Sep 30, 2007

Summary

Key Highlights

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