real-time news and commentary for investors
Saturday, Oct 19
JPMorgan reaches tentative $13B settlement with DOJ
- Struck Friday night, reports the WSJ, the deal doesn't resolve the continuing criminal probe of JPMorgan (JPM), which could result in charges against individuals or even more financial penalties against the bank. It would however, put to rest a number of federal probes as well as a separate suit by NY AG Schneidermann.
- The settlement does include the previously-reported $4B penalty to resolve FHFA claims over mortgages sold to the GSEs prior to the financial crisis. Added to that would be another $4B in consumer relief and another $5B paid to the Feds.
- The final deal hasn't been inked yet, and particulars, such as the final wording are still being discussed, but the general terms have been signed off on by Attorney General Holder and Jamie Dimon (as well as the JPM board).
- The amount of $13B is more than the $11B which had been bandied about in the financial press for the past couple of weeks.