JPMorgan Agrees to Record Financial Crisis Penalty

Company officially strikes $13B settlement
By Newser Editors and Wire Services
Posted Nov 19, 2013 2:47 PM CST
People are silhouetted below signage at the JPMorgan Chase & Co. headquarters in New York, Tuesday, Nov. 19, 2013.   (AP Photo/Seth Wenig)

(Newser) – Quick, somebody #AskJPM how it feels to pay the largest civil settlement in history. JPMorgan Chase & Co. has reached a record $13 billion deal with federal and state authorities, resolving claims over the bank's sales of mortgage-backed securities that collapsed during the US housing crisis. It is the largest settlement ever between the Department of Justice and a corporation and marks a key chapter for the crisis.

The settlement requires JPMorgan to pay $9 billion and provide $4 billion in consumer relief, including principal reductions and other mortgage modifications for homeowners facing foreclosure. New York Attorney General Eric Schneiderman, who sued JPMorgan in 2012, says the state will get $613 million in cash and about $400 million in relief for struggling homeowners. The deal resolves claims against JPMorgan, Bear Stearns, and Washington Mutual before 2009. (Read more JPMorgan Chase stories.)

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