JPMorgan nears multibillion-dollar mortgage settlement: NY Post
JPMorgan Chase could reach a multibillion-dollar deal as early as Tuesday, putting an end to the bank's woes from mortgage securities related investigations, the New York Post reported on Saturday.
The bank and government officials met earlier this week to try to negotiate a settlement in the $11 billion range to resolve many of the probes into how it sold mortgage bonds before the financial crisis, a source familiar with the matter told Reuters.
Negotiations have involved the possibility of JP Morgan paying up to $7 billion in cash and $4 billion in consumer relief—a large sum, but representing little more than half the bank's 2012 profit of $21 billion.
(Read more: JPMorgan in talks to settle probes for $11 billion)
JP Morgan CEO Jamie Dimon met with U.S. Attorney General Eric Holder on Thursday. While it is unusual for a company CEO to meet with the head of the U.S. Justice Department, the bank is seeking to tamp down its legal difficulties.
The settlement, if it goes ahead, would likely include claims from the regulator of Fannie Mae and Freddie Mac, which has sought some $6 billion from the bank over risky mortgage securities sold to the government-sponsored entities, according to two people familiar with the matter, Reuters reported.
(Read more: Jamie Dimon carded at Justice Dept. meeting)
JPMorgan was saddled with about 70 percent of the debt in nonperforming home loans during the financial crisis.