Skip to main content

Newsroom

November 12, 2013

Troubles for J.P. Morgan in Its Efforts to Settle

A multibillion-dollar settlement between J.P. Morgan Chase & Co. and the U.S. over soured mortgage bonds is at risk of collapsing because of disagreements related to a criminal probe of the bank and its effort to get penalties reimbursed by a government-controlled fund, according to people familiar with the discussions.

A draft agreement offered by the bank Sunday night has divided the two sides, raising new questions about the ability to finalize what would be a record-setting pact, according to people familiar with the talks.

Lawyers for the bank and the government continued talking Tuesday, and a deal still could be reached, these people said. A key sticking point is whether J.P. Morgan or the Federal Deposit Insurance Corp. bears ultimate responsibility for liabilities linked to Seattle thrift Washington Mutual Inc., said people close to the talks. J.P. Morgan acquired the banking operations of Washington Mutual during the financial crisis.”

***

Read full Wall Street Journal article here

In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today