JPMorgan in tentative $13 billion settlement with U.S. Justice Dept.
Sunday, October 20, 2013 - 00:59
Oct. 20 - In the largest deal ever between a single company and the U.S. government, banking giant JPMorgan Chase tentatively agrees to a $13 Billion deal to settle federal investigations into bad mortgage loans. Mana Rabiee reports.
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Banking giant JPMorgan Chase has tentatively agreed to a $13 billion dollar deal with the U.S. Justice Department.
The tentative deal is to settle federal investigations into bad mortgage loans the bank sold before the financial crisis.
It's the largest deal ever between a single company and the U.S. government.
At issue was whether the biggest U.S. bank sold mortgages it knew were riskier than they appeared.
The deal doesn't release the bank from criminal liability for some of the mortgages it packaged into bonds and sold to investors.
So even with the deal finalized, JPMorgan Chief Executive Jamie Dimon will have plenty of regulatory issues to deal with.
A U.S. Senate subcommittee report in March detailed how Dimon demanded subordinates withhold data from one of the bank's regulators.
In all, the bank faces more than a dozen probes around the globe … into everything from alleged bribery in China, to a possible role in manipulating benchmark interest rates.
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