JPMorgan Said to Reach $13B Settlement

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Oct. 21 (Bloomberg) –- Bloomberg’s David Ingles reports on the record deal to end U.S. probes of its mortgage-bond sales, freeing the nation’s largest bank from mounting civil disputes with the government. He speaks to Susan Li on Bloomberg Television’s “First Up.” (Source: Bloomberg)

Represents half of their profit last year.

That all goes to the u.s. government if the reports are confirmed.

David inglis is here to tell us why it has to pay such a huge fine.

It is a substantial amount of money.

There is a tentative agreement here with the u.s. government.

Last week, they had to report the loss because of the $7.2 billion charge, 8 billion as far as legal fees are concerned.

If you break the $13 billion down, where does that go?

$4 billion goes to form of relief for customers here.

9 billion will be in fines and counties.

You have a $4 billion accord with a housing regulator.

The department of justice, the district attorney, and what does this do?

For jpmorgan, it puts part of it behind them right now and ends all of these civil disputes and does not release them from criminal liability, which will mean jpmorgan may have to cooperate with a government there in the prosecution of some of its employees.

What is ironic here, some if not most of these actions were made by banks j.p. morgan acquired.

I have to emphasize this is a tentative deal.

We will find out the final details that could come out as early as this week.

Susan.

So, we have 13 billion it not by jpmorgan.

There is also a report this morning that bank of america, one of the largest mortgage providers, bigger than jpmorgan when it comes to issuing these mortgages, might actually have to face higher penalties.

You touched on it.

They could be facing and actually egg or find than jpmorgan as far as the housing authority and the housing regulators are concerned.

Overseas, freddie mac and fannie mae, because bank of america actually has a bigger exposure, $57 billion in the value of

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change