Banking

US Settles with JPMorgan for $13 Billion

Over mortgage-backed security sales

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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.