JPMorgan Said to See Possible $11B Settlement

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Sept. 26 (Bloomberg) -- JPMorgan.’s negotiations with federal and state authorities to resolve a series of investigations tied to mortgage bonds are focusing on a potential $11 billion figure, including $4 billion for consumer relief, a person familiar with the talks said. Phil Mattingly reports on Bloomberg Television's "Money Moves." (Source: Bloomberg)

D.c. with more.

What is the latest?

Negotiations between jpmorgan antigovernment lawyers have increased in intensity.

This week and today we may have seen the peak.. jamie dimon made the, to personally meet with eric holder and other justice officials about these settlement talks.

The meeting is a few days after eric holder out involved in these discussions behind the scenes.

He told his negotiators that an initial offer from jpmorgan to wrap up a series of mortgage- related probes was not adequate.

That number, which we heard was around $3 billion, has increased quite a bit as proposals of going back-and-forth between the bank and government officials.

As of last night, sources said the number $11 billion was being considered.

It is important to note, people familiar caution that negotiations are very fluid.

There are a lot of numbers flying around.

The two sites could be a couple billion dollars apart.

Things could still fall apart.

Still, this point up to the public a signal that the bank is very serious about getting this done.

And for other banks, it may actually be time to pay attention.

Eric holder at a press conference today said this will not be it for his department.

We have brought a substantial number of those kind of cases over the past few years.

We have matters that are under investigation, and i suspect we will be making further announcements in the coming weeks and months.

However the jpmorgan negotiations wrap up, particularly when it comes to the ongoing investigations into mortgage-backed securities, banks need to be casting a wary eye about what the department is working on right now.

I know that there is no real number other that has been confirmed, but i have heard estimates as high as $11 billion.

What are your sources telling you?

Again, that is a number that was out there last night.

It remains kind of the core number.

Think about it this way, on monday 3 billion was the number we were hearing.

Now we are up to 11 billion dollars.

It is incredible how something can grow like that over the course of a couple days.

We are still hearing that the sides are billions of dollars apart.

But $11 billion is the number people were betting around, and both sides were trying to figure out if there was a way they could make that work.

Everybody is very cautious on this.

Because of how many players are involved on this and because of how many probes they are trying to wrap into this, things are very fluid.

Just remind us, as you just alluded to, there is a lot of moving parts.

It is not just the justice department and jpm.

That is right.

This is where it gets complicated.

This is part of a task force run out of the justice department, but there are different federal agencies involved and different state agencies.

Everybody has their own interests and their own politics.

A lot of them have their own investigations.

To wrap this up, it would be great for jpmorgan.

They have made it clear that to get this behind them would be fantastic for them as a company.

But on the government site, they are dealing with a lot of entities that want their own part.

It is very complex.

There are a lot of moving parts.

Shifting targets.

It is difficult for jpmorgan's lawyers, but it is also difficult to keep this whole task force together.

Phil mattingly, thank you for joining me from washington, d.c. back to new york, andy russell

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


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