Investigations into JPMorgan end in $13 billion settlement

JPMORGAN Chase and the Department of Justice have tentatively agreed to a $13 billion civil settlement to resolve several investigations into the bank's mortgage securities business, according to a U.S. official familiar with the negotiations.

Mortgage-backed securities and related derivatives were a key cause of the financial crisis, saddling financial institutions with losses as the housing market cratered. If completed, the settlement would be substantially larger than any law enforcement officials have secured from a single institution in connection with the crisis.

The settlement includes $9 billion in fines and penalties and $4 billion in 'consumer relief,' including home loan modifications, the official said.

A federal criminal investigation based in Sacramento continues, and the deal does not include a non-prosecution agreement that JPMorgan Chase (JPM, Fortune 500) had originally insisted be part of the deal, the official said.

As the criminal case develops, JPMorgan Chase has agreed to assist in an investigation that is pursuing possible charges against individuals, the official told CNN.


Correction of a bit of a Furphy

Correction of a bit of a Furphy

Anzac Day correction of a furphy

Share some love with Mullum cottage

Share some love with Mullum cottage

Vote to supprt Mullumbimby Cottage

Spend money on veterans' health, not war memorials

Spend money on veterans' health, not war memorials

Former army chief calls for more mental health support for veterans

Local Partners