 "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.
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It is the largest settlement ever between the Department of Justice and a corporation and marks a key chapter for the crisis. Reuters[/caption]
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