Jamie Dimon's multibillion-dollar mortgage nightmare is this close to an end.
US Attorney General Eric Holder is expected to announce as early as Tuesday the long-awaited record $13 billion settlement over JPMorgan Chase's underwriting of dicey mortgage securities, according to people familiar with the talks.
The deal between the bank and a cadre of government regulators and state attorneys general didn't come until Dimon agreed Monday to an outside monitor to oversee some $4 billion in consumer relief.
Part of the expected pact will see JPM agree to forgo claims on some $4 billion in assets from a Federal Deposit Insurance Corp.-led receivership of failed bank Washington Mutual, which JPM acquired during the 2008 financial crisis.
Regulators wanted to avoid having Dimon use billions in claims to shrink JPM's final settlement tab to roughly $9 billion.
However the agreement with the FDIC will allow JPMorgan to "preserve the right" to pursue claims related to the FDIC that fall outside the long-awaited accord, sources said.
A JPMorgan spokesman declined to comment.
The $13 billion settlement includes:
- Compensatory payments of $7 billion, which includes the $5.1 billion paid to the Federal Housing Finance Agency earlier this month;
- A fine of $2 billion; and
- $4 billion in broad consumer relief.
The consumer-relief portion could include various aid programs to borrowers such as mortgage principal reductions for those who owe more on their mortgages than their properties are worth.
The relief funds could be earmarked for low-income housing markets, with some $300 million to $500 million designated to help homeowners restructure housing debt, according to WSJ.com, which first reported that a settlement could be announced Tuesday.
Regulators and JPMorgan had been unhappy with the pace of the deal talks led by Holder's team — especially after Dimon two months ago took an unusual trip to Washington to speed up negotiations and smooth out rough patches in the tense negotiations, sources familiar with the talks say.
The complexity and number of parties involved in the deal led to the delay, those sources added.
Dogged by legal woes since its "London Whale" trading scandal last year, JPMorgan took the unusual step of announcing as a part of its third-quarter results that it set aside a whopping $23 billion to address a laundry list of litigation, including Tuesday's deal.
Anda sedang membaca artikel tentang
JPMorgan, feds agree on $13B settlement deal
Dengan url
http://bahayaprostat.blogspot.com/2013/11/jpmorgan-feds-agree-on-13b-settlement.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
JPMorgan, feds agree on $13B settlement deal
namun jangan lupa untuk meletakkan link
JPMorgan, feds agree on $13B settlement deal
sebagai sumbernya
0 komentar:
Posting Komentar