Politico is reporting that JPMorgan Chase has reached a tentative agreement with the U.S. Justice Department to pay out a $13 billion settlement regarding how the company handled bad mortgages in the leadup to the 2008 financial crisis.
From Politico –
JPMorgan Chase has reached a tentative agreement with the Justice Department to pay $13 billion to settle civil investigations related to the bank’s sale in the lead up to the 2008 financial crisis of mortgage-backed securities that were packed with bad loans, according to a person close to the negotiations
The package will include $9 billion in penalties paid to the government and $4 billion in relief for consumers.
The deal is part of a broader effort by JPMorgan to settle outstanding cases with the Justice Department and federal regulators.
Reuters has more –
The tentative deal does not release the bank from criminal liability, a factor that had been a major sticking point in the discussions, the source said.
As part of the deal, the bank will continue to cooperate in criminal inquiries into certain individuals involved in the conduct at issue, the source, who declined to be identified.
This story will be updated as more information becomes available.