UPDATE 1-JPMorgan's $13 billion deal hit stumbling block-source
Oct 29 (Reuters) - The preliminary $13 billion deal set by JPMorgan Chase & Co CEO Jamie Dimon and U.S. Attorney General Eric Holder has hit a stumbling block, a person familiar with the talks said on Tuesday.
In a draft settlement circulated late Sunday, JPMorgan sought a provision that effectively shut down any criminal inquires into the bank's mortgage bond business apart from an investigation from California prosecutors the bank has already disclosed, the person said.
Also at issue is a long-running disagreement between the bank and the Federal Deposit Insurance Corp over legal liabilities from JPMorgan's takeover of Washington Mutual assets and obligations during the financial crisis.
The Department of Justice has sought a provision in the settlement that prohibits JPMorgan from seeking to push the WaMu liabilities from the settlement onto the FDIC.
The DOJ has led negotiations to resolve multiple state and federal probes into JPMorgan's mortgage bond business and that of the firms it acquired during the financial crisis.
On Friday, one of the agencies, the Federal Housing Finance Authority, grew impatient waiting for the completion of the package deal and separately signed with JPMorgan a $5.1 billion settlement, of which $4 billion had been seen as counting toward the $13 billion amount.