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JPMorgan To Settle Bad Mortgage Allegations With $13B Payout to Feds

JPMorgan Chase & Co has reached a tentative $13 billion agreement with the U.S. Justice Department to settle government agency investigations into bad mortgage loans the bank sold to investors before the financial crisis, a source said on Saturday.

The tentative deal does not release the bank from criminal liability for some of the mortgages it packaged into bonds and sold to investors, a factor that had been a major sticking point in the discussions, the source said.

As part of the deal, the bank will likely cooperate in criminal inquiries into certain individuals involved in the conduct at issue, the source, who declined to be identified, said.

Source: Reuters. Read full article. (link)

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  • Anvil||

    Hopefully that money gets applied to the national debt.

  • John C. Randolph||

    No money to the people allegedly hurt by whatever JPM is admitting to, just more money for granny-gropers and NSA spies.

    -jcr

  • Rufus J. Firefly||

    When I was a broker, the bad boys at the time were Merrill Lynch. It seemed a day didn't go by when one of their brokers wasn't getting, erm, lynched by regulators. This was back during the tech bubble. Everyone was trading on margin and ML wasn't even warning investors about the pitfalls; in fact in some cases were actually encouraging it.

    As for this case, while the banks were indeed giving bad loans, I still don't understand a) how people didn't know what they were getting themselves into and b) the role of the government (repeal of Glass-Steagal couldn't have helped) insisting people have homes. Surely they had a hand in this - indirectly or not - no?

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