Heard on the Street

Looking Past J.P. Morgan's Pain

Updated Oct. 20, 2013 10:49 a.m. ET

Investing is about what is to come, not what is past. That is why J.P. Morgan Chase's reported $13 billion settlement with the government over sales of mortgage-backed bonds, if finalized this week, may not faze investors much.

For starters, J.P. Morgan will likely be able to say that it was prepared for this, due to the $9.15 billion charge it took in the third quarter for litigation expense. At the time, the bank also disclosed that its legal reserve as of Sept. 30 stood at $23 billion, quite a buffer. That would mean...

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