Negotiations between the government at both federal and state levels and JPMorgan Chase & Co in order to resolve a series of investigations related to mortgage bonds are now focused on a figure. The possible settlement amount is USD11 billion with USD4 billion earmarked for consumer relief according to a person familiar with the discussions.
The amount though has not yet been finalized according to the source, who sought to remain anonymous as the discussions still remain private. The parties to the discussions and negotiations include the US Departments of Justice with the Housing and Urban Development for the federal authorities while New York Attorney General Eric Schneiderman representing the state level. The NY Attorney General is also the co-chairman of a working group comprising federal and state authorities reviewing residential mortgage-backed securities.
JPMorgan CEO Jamie Dimon had gone to the offices of the Justice Department in Washington to discuss the settlement in person with Attorney General Eric Holder. Earlier in the week, according to a person familiar with the discussions, federal authorities had rejected a proposal sent by the bank for the settlement of the inquiries. The said price offer was between USD3 billion and USD4 billion.
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