JPMorgan would pay $ 13 billion to settle lawsuits
U.S.
bank JPMorgan Chase has concluded an agreement with the U.S. Department
of Justice to pay a record $ 13 billion to end a series of lawsuits ,
according to the Wall Street Journal.
Citing a source familiar with the matter , the business daily stated on Saturday that the agreement to settle a series of lawsuits related to the crisis derived from risky mortgages (subprime) securities was concluded Friday night between the U.S. Minister of Justice Eric Holder , his assistant , Tony West, and counsel for JPMorgan , Stephen Cutler.
According to the New York Times , which also announced the preliminary agreement , the charismatic CEO of JPMorgan , Jamie Dimon, have participated in the discussions .
If the amount is confirmed, it would be the largest amount ever paid by a U.S. company in this type of agreement with the government. It represents more than half of the annual profits of the bank, which last year totaled $ 21.3 billion . It would also be higher than the $ 11 billion raised by Mr. Dimon said in an interview in Washington in late September with the Minister of Justice.
The agreement does not concern a criminal investigation against JPMorgan , the largest U.S. bank by assets , led by a court in Sacramento , California (west), according to the Wall Street Journal.
The California court accuses the bank of having " violated certain securities laws in connection with offerings of bonds backed by real estate securities risk (subprime) between 2005 and 2007 " , that is to say, before the takeover by JPMorgan 2008 , at the height of the financial crisis and the request of the authorities , banks Bear Stearns and Washington Mutual , cast by the " subprime " .
However, it would resolve lawsuits by the FHFA , the regulator of mortgage loans in the United States , which accuses JPMorgan of deceiving organizations refinancing quasi-public Fannie Mae and Freddie Mac by selling them " subprime " before the crisis, resulting in their loss , leading to their massive bailout by the state.
In its complaint filed in 2011, the FHFA said that JPMorgan had sold $ 33 billion of " subprime " loans to Fannie and Freddie , while concealing the fact that these financial products based ultimately on insolvent borrowers.
Citing a source familiar with the matter , the business daily stated on Saturday that the agreement to settle a series of lawsuits related to the crisis derived from risky mortgages (subprime) securities was concluded Friday night between the U.S. Minister of Justice Eric Holder , his assistant , Tony West, and counsel for JPMorgan , Stephen Cutler.
According to the New York Times , which also announced the preliminary agreement , the charismatic CEO of JPMorgan , Jamie Dimon, have participated in the discussions .
If the amount is confirmed, it would be the largest amount ever paid by a U.S. company in this type of agreement with the government. It represents more than half of the annual profits of the bank, which last year totaled $ 21.3 billion . It would also be higher than the $ 11 billion raised by Mr. Dimon said in an interview in Washington in late September with the Minister of Justice.
The agreement does not concern a criminal investigation against JPMorgan , the largest U.S. bank by assets , led by a court in Sacramento , California (west), according to the Wall Street Journal.
The California court accuses the bank of having " violated certain securities laws in connection with offerings of bonds backed by real estate securities risk (subprime) between 2005 and 2007 " , that is to say, before the takeover by JPMorgan 2008 , at the height of the financial crisis and the request of the authorities , banks Bear Stearns and Washington Mutual , cast by the " subprime " .
However, it would resolve lawsuits by the FHFA , the regulator of mortgage loans in the United States , which accuses JPMorgan of deceiving organizations refinancing quasi-public Fannie Mae and Freddie Mac by selling them " subprime " before the crisis, resulting in their loss , leading to their massive bailout by the state.
In its complaint filed in 2011, the FHFA said that JPMorgan had sold $ 33 billion of " subprime " loans to Fannie and Freddie , while concealing the fact that these financial products based ultimately on insolvent borrowers.
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