A tentative settlement of all civil mortgage bond related cases has been reached between JPMorgan Chase & Co with the Department of Justice. Under the terms of the agreement, the largest bank in the United States would pay a record USD13 billion, according to a person familiar with the settlement negotiations.
The amount jumped from USD11 billion to USD13 billion overnight, as it included USD4 billion for unspecified consumer relief and about USD9 billion for fines and other penalties. The USD9 billion includes a settlement with the Federal Housing Finance Agency over the sale by the bank of mortgage backed securities.
The settlement is yet to be finalized and does not include an exemption for criminal liability for the bank's executives. This was insisted by US Attorney General Eric Holder, according to the same anonymous source. A second source confirmed that during the discussions between Holder and CEO Jamie Dimon, no such release was to be part of any deal.
The sources further said the proposed settlement would require the bank to provide assistance in criminal prosecutions for individuals tied to wrongdoing related to the bank's mortgage practices. The sources sought anonymity as the matter was not publicly announced yet.
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