JPMorgan Chase and Justice Dept. Said to Be Discussing a Record $13 Billion Settlement
JPMorgan Chase and the Justice Department are moving closer to a $13 billion settlement over the bank’s mortgage practices, people briefed on the talks said Saturday, a record penalty that would cap weeks of heated negotiating and underscore the extent of the bank’s legal woes.
To resolve an array of federal and state investigations into the bank’s sale of troubled mortgage securities to investors in the lead up to the financial crisis, the bank would be expected to pay about $9 billion in fines, according to a person briefed on the negotiations. JPMorgan, the nation’s largest bank, will also likely provide about $4 billion in relief for struggling homeowners, another person briefed on the talks said.
The penalties eclipse what the bank previously offered to pay. Until now, JPMorgan was offering about $11 billion. And it had been refusing to increase its offer until the Justice Department dropped a parallel criminal investigation into the bank’s sale of troubled mortgage securities to investors.
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http://dealbook.nytimes.com/2013/10/19/jpmorgan-said-to-be-discussing-13-billion-settlement-over-mortgage-loans/?emc=edit_na_20131019
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