JPMorgan Reaches Record $13 Billion Mortgage Settlement
This article is for subscribers only.
JPMorgan Chase & Co. will pay a record $13 billion to resolve U.S. Justice Department probes into the bank’s sale of mortgage bonds that officials said helped feed the financial chaos of 2008.
The accord settles allegations that JPMorgan, the biggest U.S. lender by assets, misled investors and the public when it sold bonds backed by faulty residential mortgages, according to Justice Department statement today. U.S. and state officials blamed the bank’s actions in the statement for helping to cause the credit crisis, and said the settlement doesn’t shield JPMorgan or its employees from criminal charges.