US Settles with JPMorgan for $13 Billion
Over mortgage-backed security sales
JPMorgan Chase has reached a record $13 billion settlement with federal and state authorities to resolve claims over the bank's sales of mortgage-backed securities that collapsed during the U.S. housing crisis.
It is the largest settlement ever between the Department of Justice and a corporation, and marks a key chapter for the crisis.
The settlement announced Tuesday requires JPMorgan to pay $9 billion and provide $4 billion in consumer relief, including principal reductions and other mortgage modifications for homeowners facing foreclosure.
