CHICAGO, Sept 28 JP Morgan Chase & Co
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
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.