JPMorgan, DoJ Strike 'Tentative' $13B Deal
Doesn't exempt bank from criminal prosecution
By Ruth Brown, Newser Staff
Posted Oct 19, 2013 3:37 PM CDT
Employees chat inside the lobby of JPMorgan Chase & Co. headquarters on Park Avenue in New York.   (AP Photo/Kathy Willens)

(Newser) – JPMorgan Chase has reached a tentative $13 billion deal with the Department of Justice to settle its various civil investigations into the bank's mortgage-backed securities business, a sources tells the Wall Street Journal (and Reuters and Politico; apparently this meeting was leakier than a rowboat made of Swiss cheese). The negotiations had reportedly stalled because JPMorgan wanted a deal that would also end the criminal probe into its activities. But Eric Holder told its lawyers last night that it just wasn't going to happen, and the bank relented.

The deal also requires that JPMorgan cooperate with federal prosecutors in the criminal investigation. The settlement will include $9 billion in government penalties, and $4 billion for consumers, Politico reports. But it isn't a sure thing yet—some final details are still being hammered out. Once—and if—it's made official, this will be the largest settlement the US government has ever made with a single company, reports the Journal.

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Showing 3 of 25 comments
Who_Cares
Oct 20, 2013 12:46 PM CDT
The greed of the corporation owners created new superpower, China. They holding arms with Russians making us look like a fools and this makes me sick. We are finished.
Wileybill
Oct 20, 2013 12:11 PM CDT
Just another circus to distract the from the AMERICAN PEOPLE who were ripped off. When all is done the lawyers will make of with half and the balance may go (if lucky) back to the government who will in turn- funnel the money right back to the banks, all the while taxes and cost of living will skyrocket to actually pay the debt. When one over complicates the simplest things - like math the only purpose is to deceive. Americans need a simple majority vote process to remove every one in the federal government and start new. No one with total assets worth more than one million dollars should be allowed to hold office as their only goal is to distort law to boost their investments. All bills and law should also be mandatory simple English language and one "topic" and vote per law and bill - no more passing huge salary increases in the back pages of bill entitled "School Lunch Subsidy Bill" etc.
radicalron
Oct 20, 2013 10:40 AM CDT
As of December 31, 2011, JPMorgan Chase held $70.2 trillion in derivatives, total assets of $1.8 trillion and only $136 billion in risk-based capital. In other words, the bank's derivative bets are 516 times larger than the capital that covers the total amount of money on hand! It is difficult to imagine a more reckless and unstable position for a bank to place itself in. Oh well, when we fall, we're going down hard.