Credit: Reuters/Mike Segar
By Aruna Viswanatha
WASHINGTON | Sat Oct 19, 2013 3:32pm EDT
WASHINGTON (Reuters) - JPMorgan Chase & Co has reached a tentative $13 billion agreement with the U.S. Justice Department to settle a range of mortgage issues, a source familiar with the talks said on Saturday.
The tentative deal does not release the bank from criminal liability, a factor that had been a major sticking point in the discussions, the source said.
As part of the deal, the bank will continue to cooperate in criminal inquiries into certain individuals involved in the conduct at issue, the source, who declined to be identified.
Officials at JPMorgan and the Justice Department declined to comment.
A breakthrough in the weeks-long talks came Friday night, after Attorney General Eric Holder and JPMorgan Chief Executive Jamie Dimon spoke on the phone and the bank agreed to leave criminal liability out of the settlement, the source said.
The bank and the Justice Department have been discussing a broad deal that would resolve not only a civil investigation into mortgage securities that the bank sold in the runup to the financial crisis, but also similar lawsuits from the Federal Housing Finance Agency, the National Credit Union Administration, the state of New York and others.
Reuters reported late Friday that JPMorgan and FHFA had reached a tentative $4 billion deal. That agreement is expected to be part of the larger $13 billion settlement.
JPMorgan is seeking a single settlement to resolve all claims from federal and state agencies over its mortgage-related liabilities stemming from the bust in house prices.
(Reporting by Aruna Viswanatha; Editing by Doina Chiacu)
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Comments (2)
“The settlement does not include any release from criminal liability for the bank, the source said.”
That may be true but $13 billion goes a long way in making criminal charges less likely.
Oct 19, 2013 3:11pm EDT -- Report as abuse
It goes without saying (But I’ll say it anyway), if 13 billion dollars is an acceptable fine, they must have made a lot more in profit to be able to afford it.
Oct 19, 2013 3:37pm EDT -- Report as abuse
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