Home > Finance, Law > JPMorgan Reaches Tentative Record $13 Billion U.S. Settlement

JPMorgan Reaches Tentative Record $13 Billion U.S. Settlement

Sunday, October 20th, 2013 Leave a comment Go to comments

JPMorgan Chase has reached a tentative $13 billion settlement with the Justice Department over a number of investigations related to to the bank’s residential mortgage-backed securities business. The deal is expected to end U.S. probes of JPMorgan’s mortgage-bond sales and free the nation’s largest bank from mounting civil disputes with the government while leaving a criminal inquiry unresolved.

Here are other highlights of the tentative record deal, as noted by Bloomberg:

  • The tentative pact with the Department of Justice increased from an $11 billion proposal last month and would mark the largest amount paid by a financial firm in a settlement with the U.S.
  • The deal wouldn’t release the bank from potential criminal liability, at the insistence of U.S. Attorney General Eric Holder, according to terms described by a person familiar with the talks.
  • The agreement, which isn’t yet final, includes $4 billion in relief for unspecified consumers and $9 billion in payments and fines, according to another person briefed on the terms.
  • The settlement would amount to more than half of JPMorgan’s record $21.3 billion profit last year, or 1.5 times what the firm’s corporate and investment bank set aside to pay employees during this year’s first nine months.
  • The outline of the tentative accord was reached during a telephone call between Holder, JPMorgan CEO Jamie Dimon, JPMorgan General Counsel Stephen Cutler and Associate U.S. Attorney General Tony West. The settlement’s statement of facts is still being negotiated.

 

See also:

JPMorgan agrees to tentative $13 billion settlement with U.S. over bad mortgages (The Washington Post)

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