Operator: Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's Third Quarter 2013 Earnings Call. This call is being recorded. Your line will be muted for the duration of the call. We will now go live to the presentation. Please stand by.
At this time, I would like to turn the call over to JPMorgan Chase's Chairman and CEO, Jamie Dimon and Chief Financial Officer, Marianne Lake. Ms. Lake, please go ahead.
Marianne Lake - CFO: Thank you. Good morning, everyone. I'm going to take you through the earnings presentation, which is available on our website. Please refer to the disclaimer regarding forward-looking statements at the back of the presentation.
The firm made a net loss of $380 million for the third quarter on the back of very significant litigation expenses. So, I want to take you first to Page 2. We've added this page for this quarter only, as we want to be as transparent with you as we can be and give you as complete a picture as possible of our litigation reserves, and a current perspective on the evolution of our reasonably possible range of losses for litigation.
As you know, as transparent as we would like to be, we are necessarily constrained in what we can actually say.
Having said that, on Page 2, I'll start by saying that we appreciate that the litigation expense of $9.2 billion is much more significant than you've been expecting. It's much more significant than we expected until very recently. The reality is that over the last few weeks, the environments become highly charged and very volatile. Things have been very fluid and the situation escalated to the point where we are facing very large premiums and penalties. The level of which has gone far beyond what we reasonably expected. However, those are the facts we are dealing with today and are reserving actions this quarter and are trying as far as possible to put these issues behind us.
So, let me quickly take you through the table on the top of Page 2, which is a roll forward of our reserves. We started 2010 with $3 billion in reserves; added around $28 billion through the third quarter, including the actions this period; and have settled a little less than $8 billion across matters which leads us with $23 billion approximately of ending reserves which relates to a broad range of matters, and includes a significant reserve for mortgage-related matters, including both securities and repurchase litigation exposure. Remember our GSE repurchase reserves of over $2 billion are separate from this.
The balance at quarter end reflects the $9.2 billion we are expensing this quarter. This expense also covers a range of matters, including but not limited to mortgage-backed securities. The impacts to net income, you can see, is high as it is being affected by a portion of the expense estimated to relate to enforcement penalties, which would not be tax deductible. Again these estimates relate to a number of cases, including among other things, mortgage, as well as the recently announced CIO settlements. We do expect litigation expenses to normalize over time to much lower levels, but they may be somewhat lumpy quarter-over-quarter.