JPMorgan's Jamie Dimon meets with AG at US Justice Department
JPMorgan Chase CEO Jamie Dimon met with Attorney General Eric Holder at the Department of Justice headquarters Thursday as the nation's biggest bank attempts to end multiple government investigations into its liability for selling shoddy mortgage securities.
The settlement talks in Washington come after the U.S. Department of Justice threatened to file a lawsuit on Tuesday over one of its cases. AG Holder acknowledged that the meeting took place, but declined to comment on its nature.
Dimon's meeting follows talks over a possible $11 billion settlement with government officials to settle federal and state mortgage probes. Sources said the discussions have been with the Securities and Exchange Commission, the U.S. Department of Housing and Urban Development and the New York State Attorney General in addition to the DOJ.
JPMorgan is hoping to ease some of the pressure that regulators have been putting on the bank for months. The bank sidestepped the worst losses in the financial crisis, but it has looked less smart since May 2012, when it said it was losing money on derivatives bets that became known as the "London Whale" trades.
JPMorgan stock ticked slightly higher Thursday. (Click here to track the company's shares following the report.)
The visit follows several recent interactions between the bank and regulators, including:
- September 25: Negotiations resume with the U.S. Department of Justice after federal prosecutors in California delayed a plan to file a lawsuit there the day before
- September 24: The JPMorgan settlement figure was reported to be anywhere from $3 to $7 billion
- September 19: The bank admits wrongdoing in the London Whale case and agrees to pay $920 million in penalties after negotiations with U.S. and U.K. regulators
- September 16: The U.S. Commodity Futures Trading Commission notifies the bank that its staff had recommended filing charges against the bank over "certain trading activities" that occurred in its London office.
- September 5: Due to competition from federal government programs and increased scrutiny from regulators that limited its ability to expand the business, JPMorgan decides to stop making student loans.
—By CNBC.com With Reuters