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Ben Protess
The New York Times|nytimes.com

JPMorgan Chase and the Justice Department have reached a tentative $13 billion settlement over the bank’s questionable mortgage practices leading up to the financial crisis, a record penalty that would cap weeks of heated negotiating and underscore the extent of the bank’s legal woes, people briefed on the talks said Oct. 19.

To resolve an array of federal and state investigations into the bank’s sale of troubled mortgage securities to investors, the bank would be expected to pay about $9 billion in fines, according to one of the people.

JPMorgan, the nation’s largest bank, also very likely will provide about $4 billion in relief for struggling homeowners, another person briefed on the talks said. read more »


More than a year after a group of traders at JPMorgan Chase caused a multibillion-dollar loss, government authorities imposed a $920 million fine on the bank Thursday and shifted scrutiny to its senior management.

Extracting the fines and a rare admission of wrongdoing from the nation’s largest bank, regulators in Washington and London took aim at a pervasive breakdown in controls and leadership at the bank.

The deal resolves investigations from four regulators: the Securities and Exchange Commission (SEC), the Office of the Comptroller of the Currency, the Federal Reserve and the Financial Conduct Authority in London. read more »


Goldman Sachs has disclosed it was cleared of wrongdoing after an investigation into a $1.3 billion subprime-mortgage deal, a surprising victory for the bank.

The Securities and Exchange Commission’s decision to forgo action is an about-face for the regulator. In February, the SEC notified Goldman it planned to pursue a civil enforcement action over the deal, a package of subprime mortgages in Fremont, Calif., that the bank sold to investors in 2006.

The SEC was examining whether Goldman misled investors into thinking the mortgage securities were a safe bet. At the time, Goldman said it would fight to persuade regulators they were mistaken. read more »

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