JPMorgan-US reach $13 bn deal over practices that led to recession

Albany, New York: JPMorgan Chase & Co. has reached a record $13 billion settlement with federal and New York state authorities, resolving claims over the bank’s sales of mortgage-backed securities that collapsed during the US 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.

[caption id=“attachment_1239147” align=“alignleft” width=“380”]  It is the largest settlement ever between the Department of Justice and a corporation and marks a key chapter for the crisis. Reuters[/caption]

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New York Attorney General Eric Schneiderman, who sued JPMorgan in 2012, says the state will get $613 million in cash and about $400 million in relief for struggling homeowners.

The deal resolves claims against JPMorgan, Bear Stearns and Washington Mutual before 2009.

AP