JPMorgan nears multibillion-dollar mortgage settlement: NY Post

CHICAGO Sat Sep 28, 2013 1:11pm EDT

J.P. Morgan CEO Jamie Dimon (C) leaves the U.S. Justice Department after meeting with Attorney General Eric Holder, in Washington September 26, 2013. REUTERS/Gary Cameron

J.P. Morgan CEO Jamie Dimon (C) leaves the U.S. Justice Department after meeting with Attorney General Eric Holder, in Washington September 26, 2013.

Credit: Reuters/Gary Cameron

CHICAGO (Reuters) - JP Morgan Chase & Co (JPM.N) could reach a multibillion-dollar deal as early as Tuesday, putting an end to the bank's woes from mortgage securities related investigations, the New York Post reported on Saturday.

The bank and government officials met earlier this week to try to negotiate a settlement in the $11 billion range to resolve many of the probes into how it sold mortgage bonds before the financial crisis, a source familiar with the matter told Reuters.

Negotiations have involved the possibility of JP Morgan paying up to $7 billion in cash and $4 billion in consumer relief - a large sum, but representing little more than half the bank's 2012 profit of $21 billion.

JP Morgan CEO Jamie Dimon met with U.S. Attorney General Eric Holder on Thursday. While it is unusual for a company CEO to meet with the head of the U.S. Justice Department, the bank is seeking to tamp down its legal difficulties.

The settlement, if it goes ahead, would likely include claims from the regulator of Fannie Mae and Freddie Mac, which has sought some $6 billion from the bank over risky mortgage securities sold to the government-sponsored entities, according to two people familiar with the matter, Reuters reported.

JPMorgan was saddled with about 70 percent of the debt in nonperforming home loans during the financial crisis.

(Reporting by Christine Stebbins; editing by Gunna Dickson)

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Comments (3)
chekovmerlin wrote:
As long as their is relief for the victims of this criminal affair, good. That is, if these people EVER see the money. That’s the rub. Will Chase REALLY come through? That’s the 11 billion dollar question. That’s $11,000,000,000.

Sep 28, 2013 4:14pm EDT  --  Report as abuse
tmc wrote:
Holder should never have agreed to meet with him. He does not warrant special treatment and should not get it.

Sep 28, 2013 10:17pm EDT  --  Report as abuse
Jocomus wrote:
“Haha, pay other people’s big money to buy out my prison time sounds a great bargain to me” so cheered Dimon. More still, he will get another golden handshake package. Madoff looked much junior.

Sep 29, 2013 4:17am EDT  --  Report as abuse
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