Tom Schoenberg & Dawn Kopecki Bloomberg
October 19, 2013
JPMorgan Chase & Co. has reached a tentative resolution of all civil mortgage-bond related matters with the U.S. Department of Justice under which the nation’s largest bank will pay a record $13 billion, a person familiar with the settlement talks said.
The amount increased from $11 billion during negotiations last night, the person said. The deal includes $4 billion for unspecified consumer relief and $9 billion in fines and other payments, another person familiar with the matter said. The $9 billion includes a $4 billion accord with the Federal Housing Finance Agency over the bank’s sale of mortgage-backed securities.
The pact, which isn’t yet final, doesn’t include a release of potential criminal liability for the bank, at the insistence of U.S. Attorney General Eric Holder, the first person said. Holder told JPMorgan Chief Executive Officer Jamie Dimon during talks that such a release wouldn’t be forthcoming as part of any deal, said the person.