JPMorgan talks back on track after turbulence: WSJ
Discussions to settle an agreement between JPMorgan Chase and the Department of Justice are heating back up, The Wall Street Journal reported Tuesday, following a period in which the talks were nearly derailed by disagreements.
The banking giant is negotiating with federal prosecutors to iron out a $13 billion deal that would resolve a range of probes stemming from JPMorgan's mortgage bond sales before the housing market went bust.
According to the Journal, negotiators representing the bank and the DoJ are working on language that would address the gulf between the two camps. This includes the question of whether JPMorgan can count $5.1 billion in recent settlements with mortgage finance companies Fannie Mae and Freddie Mac toward the eventual $13 billion tally.
The bank has tentatively acceded to a DoJ request that only $4 billion should be counted against the larger agreement, the newspaper said, citing unidentified sources close to the talks. A $1.1 billion payment earmarked for Fannie and Freddie would not be counted, these people added.
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