JPMorgan Chase, eager to put a raft of mortgage-securities litigation behind it, is close to reaching a $13 billion settlement with the U.S. government, according to people familiar with the situation.
During a late Friday call between JPMorgan Chief Executive Jamie Dimon, Attorney General Eric Holder and lawyers for both sides, the bank agreed to pay about $13 billion to settle civil cases pending with the Justice Department, the New York Attorney General, and the Federal Housing Finance Agency.
The probes are over its handling of mortgage-backed securities that plummeted in value during the housing crash of the late 2000s, according to one of these people.
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Of that sum, about $4 billion resolves the outstanding FHFA issues and about $4 billion would be put into a consumer-relief fund, added that person. The balance would be put toward resolving the Justice and New York state matters.