Friday, October 25, 2013

Tentative JPMorgan Pact Said to Hit Snag Over FDIC Funds - Bloomberg

JPMorgan Chase & Co.’s (JPM) tentative agreement to pay a record $13 billion to end civil claims over its sales of mortgage bonds has hit a snag because of the bank’s bid to make the Federal Deposit Insurance Corp. liable for part of the payment, a person familiar with the talks said.
The U.S. Justice Department is opposing JPMorgan’s request that the FDIC assume liability for investors’ losses stemming from Washington Mutual Inc., the person, who sought anonymity to discuss the private negotiations, said today. JPMorgan acquired Washington Mutual’s assets in 2008.






The tentative agreement was described last weekend by two people with knowledge of the situation. It would mark the largest amount paid by a financial firm in a settlement with the U.S. The payment would amount to more than half of JPMorgan’s profit last year. Only seven companies in the Dow Jones Industrial Average earned more than $13 billion in 2012, according to data compiled by Bloomberg.


Tentative JPMorgan Pact Said to Hit Snag Over FDIC Funds - Bloomberg

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