Last Update 0:58
Wednesday, 22 May 2019

JPMorgan to pay record $13 bln to settle US probes: Reports

US biggest bank in terms of assets JP Morgan has reached a preliminary agreement to pay the Justice Department the largest ever fine to settle probes into its residential mortgage-backed securities

AFP, Sunday 20 Oct 2013
Share/Bookmark
Views: 590
Share/Bookmark
Views: 590

Banking giant JPMorgan Chase reached a tentative agreement to pay a record $13 billion fine to the Justice Department to settle probes into its residential mortgage-backed securities, US media reported Saturday.

Citing sources familiar with the decision, The Wall Street Journal newspaper reported in its online edition that the deal was hashed out during a phone call Friday with US Attorney General Eric Holder, his deputy Tony West and JPMorgan's top lawyer Stephen Cutler.

If the amount is confirmed, it would be the largest ever paid by a US company in this type of settlement with the government. It's also significantly larger than JPMorgan's previous offer of $11 billion.

But the still tentative deal wouldn't resolve a criminal investigation into the bank's activities being conducted by a court in Sacramento, California, the Journal said. Both sides still disagree over an admission of wrongdoing that would end the probe.

That case could result in charges against individuals, and could increase the fine for JPMorgan Chase.

The New York Times and the Washington Post, which also reported on the tentative agreement, said that JPMorgan Chase CEO Jamie Dimon participated in the talks with Holder.

Once finalized, $4 billion would settle allegations by the Federal Housing Finance Agency, a mortgage regulator, that JPMorgan overstated the quality of the mortgages it sold on to the government-sponsored housing finance enterprises Fannie Mae and Freddie Mac.

Another $4 billion would be destined for consumer relief, and $5 billion would be paid in penalties, the Journal reported.

Although details are still being worked out, the agreement would also resolve a separate lawsuit filed by New York's Attorney General Eric Schneiderman.

US companies tend to avoid paying fines, and often try to make financial settlements without admitting fault.

JPMorgan, the largest US bank by assets, has been under investigation by several US regulatory agencies. It recently agreed to pay more than $1 billion in fines over the "London whale" trading debacle of 2012.

The bank just reported its first quarterly loss in nearly 10 years, a net loss of $380 million on revenues of $23.12 billion, due in large part to a $9.15 billion charge for legal expenses.

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.