US financial giant, JPMorgan has said that it has set aside $9.2 billion to cover the growing legal expenses, which led to a first quarterly loss under the leadership of Jamie Dimon.

The nation's largest bank is struggling to reach settlement over claims relating to its behaviour leading up to the financial crisis in the US that began five years earlier. Some reports suggest that the financial giant could reach an agreement to settle a host of mortgage-related investigations and lawsuits. The bank has resumed talks with the US as authorities in order to settle claims relating to mortgages. JPMorgan Chase & Co has entered into talks with the authorities to reportedly pay a whopping $11 billion in order to resolve allegations that the bank sold unsuited mortgage securities to its customers.

The largest bank in the country is getting ready for a lawsuit from federal prosecutors in California that accuse the bank of misleading customers into buying mortgage securities ahead of the financial crisis. The case, which is expected this week, could be in a series of other lawsuits against the bank for its actions before the mortgage crisis.

If the $11 billion settlement is reached, it would be the largest such deal by the government authorities working to hold financial giants responsible for their actions leading up to the financial crisis around five years earlier. The deal could include $7 billion in cash and another $4 billion in relief for debt-holders from the bank.

Mr. Dimon, JPMorgan's chief executive said that the legal expenses are painful. Lawyers have said that the regulators have been too harsh on the financial institution