JPMorgan set for record $13b settlement with US Justice Department
JP Morgan, America’s biggest bank, has reached a $US13 billion ($13.4 billion) deal with US regulators to settle claims that it mis-sold bundles of toxic mortgage debt to investors in the build up to the financial crisis.
The settlement, which has yet to be made official, is part of a broader investigation by the US authorities into the industry’s mortgage activities in the years before the crisis of 2008. Banks are alleged to have lied about the quality of the sub-prime mortgage securities sold to investors at the time.
The JP Morgan settlement – the largest ever by a US company with the government – is expected to resolve civil claims against the bank, but will leave it open to criminal charges. Of the $US13 billion around $US9 billion is expected to cover fines or penalties and $US4 billion will go to consumer relief for struggling homeowners.
The final cost to JP Morgan, the US’s largest bank by assets, could yet rise. A criminal investigation into its mortgage selling activities in Sacramento, California is ongoing. That case may result in charges against individuals, and an increase in the fine.
sure..13 billion is more than the 900 million we saw them get fined in the UK recently..but in the overall picture its not a mortal wound to JPM..i would suggest they made more during the crisis than 13 billion..