JPMorgan Offers Feds $3 Billion to End Mortgage Probes

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JPMorgan Trading Loss Fines
Kathy Willens/AP
By Matt Egan

In an effort to escape a dark cloud of legal uncertainty, JPMorgan Chase has expanded negotiations with the U.S. Justice Department by offering to pay $3 billion to settle a wide range of ongoing investigations, The Wall Street Journal reported.

The expanded talks with the DOJ come just days after the largest U.S. bank agreed to shell out a whopping $920 million and admit wrongdoing to settle charges tied to the London Whale trading fiasco.

The new push to resolve cases suggest JPMorgan CEO Jamie Dimon and his board are increasingly willing to stomach hefty fines to lessen the company's legal uncertainties.

Some analysts have recently been warning the regulatory scrutiny threatens to hurt JPMorgan's bottom line and its relationship with customers.

While JPMorgan offered to pay $3 billion to settle a number of ongoing probes, the DOJ is arguing the company should pay billions more, the Journal reported, adding that precisely which cases might be included in a deal isn't clear.

New York-based JPMorgan didn't immediately respond to a request for comment.

Shares of JPMorgan (JPM) closed near session lows Tuesday following the report, ending down 2.2 percent at $50.32.

There is no shortage of pending JPMorgan probes by the U.S. government, including over the bank's hiring practices in China, alleged energy-market manipulation and the pre-crisis sale of residential mortgage securities.

JPMorgan also agreed to pay $389 million in penalties and mandated refunds last week as part of a settlement with the U.S. over allegedly unfair credit-card billing practices.

Even if JPMorgan succeeds in reaching this expanded settlement with the DOJ, it wouldn't include criminal probes underway by federal prosecutors in New York investigating the London Whale scandal and the energy-market issues, the Journal reported.

Despite JPMorgan's mounting legal problems, Steve Cutler, the bank's general counsel, continues to have the confidence of Dimon and the board, FOX Business's Charlie Gasparino reported.


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11 Comments

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croone22

What about all those equity loans Chase bought from Washington Mutual and then refused to lower APR's to lower rates when rates went down. Chase should be criminally indicted

September 25 2013 at 11:07 PM Report abuse rate up rate down Reply
Joseph Bianca Kurczo

Nice job, put us in bad loans, foreclose on our homes and charges us Banks fees so you can pay off the Regulators....sell the Diamond

September 25 2013 at 4:43 PM Report abuse rate up rate down Reply
findrobin

How about 700 billion. Then you could keep the remaining 500 billion as a gift from your corrupt politicians and help Americans you ripped off.

September 25 2013 at 10:25 AM Report abuse rate up rate down Reply
maloontransllc

How about a 16 trillion dollar fine that would help us all. After all they had a hand in bringing this economy to its knees. And how about Jaime working in the soup kitchen for a year serving meals to those he help get there. I know fantasy but would be nice to pull one of the Kings into the trenches with us and see first hand what corruption does for the average Joe..

September 25 2013 at 8:14 AM Report abuse rate up rate down Reply
1 reply to maloontransllc's comment
sday1111

oh no he must work in one of the call centers in colletions for a year...

September 25 2013 at 9:11 AM Report abuse rate up rate down Reply
johnskii

Am I wrong or is that a good old fashioned "BRIBE"???????

September 25 2013 at 7:56 AM Report abuse +2 rate up rate down Reply
1 reply to johnskii's comment
mhwyman7

No, you hit the nail dead on the head.

September 25 2013 at 8:09 AM Report abuse rate up rate down Reply
mwizneraz

What a great idea for getting the country out of debt. Prosecute the illegal business activities and force a settlement upon those businesses

September 25 2013 at 7:56 AM Report abuse +1 rate up rate down Reply
michael_vici

Chinese Communist secret from me to do two years of human mental abuse test, then cattle people to do something so vile rogue super, with very powerful nano-molecules control the abuse of an ordinary person like me. Do some abject shame stick to you like a mangy dog stick as you go a little abuse. Like the people as animals go abuse. Past the fact that I will not say too much. Now my whole body, especially the head are nanometer under control, but not control things, but these nano in a variety of ways to get my body makes me uncomfortable, like my whole body calm down, a small part of the nano-molecules to calm comfortable ways by pushing the body, the other a majority of nano-molecules in the body energetically driven for manic agitation. This has been very hard to accept, mainly my head think of any other things, the head is always on a plane is driven to think, not quiet down, the body of the nano are moving. Head which are all dense nano-molecular hurts me to do all kinds of operation mode. This is a direct result of how I sleep at night, lying is not comfortable, insomnia. I abused it is to die. There are no rules Fa, I want to say from the heart: "secretive Communist perish." Why China becomes stronger, alone, so things do people abuse? 现在像只苍蝇一样在我耳朵边骂我,还控制住我的眼睛情绪配合着去骂我,眼睛还有骂我的文字图片。这得是多么恶心的人才能干出来的事,每回都是一点一点一鼓劲一鼓劲的进行控制虐待。这就是中国最先进机器的体现,最机密站在风口浪尖的人的表现,我还是那句话:“就这样虐待人,中国凭什么强大。”得是什么样肮脏的人才会做这样的事,中国隐秘共产党比畜生还要畜生,太不把人当人了。这种随意践踏文明道德的人还有什么不能做的,所以我很惨。到底还有没有规矩王法,我发自内心的想说:“隐秘共产党必亡,中国必亡。”我的手机号码13853788002。

September 25 2013 at 7:37 AM Report abuse -1 rate up rate down Reply
donovansdanes

A 3 Billion dollar BRIBE offered to the U.S. Justice Department? How interesting.

September 25 2013 at 7:31 AM Report abuse +2 rate up rate down Reply
mornewz

Big Bank. Big Trouble.

September 25 2013 at 7:22 AM Report abuse +1 rate up rate down Reply