JPMorgan (JPM), U.S. DoJ Enter 'Landmark' Settlement Over MBS Sales
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Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1.8%
Revenue Growth %: +9.0%
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JPMorgan Chase (NYSE: JPM) and the U.S. Department of Justice have entered a $13 billion settlement over mortgage-bond sales that came ahead of the recent financial crisis.
The WSJ noted that the landmark settlement was reached Monday as the final piece of the agreement was hammered out. The hangup involved terms on $4 billion worth of aid JPMorgan will need to dole out to distressed homeowners.
An announcement on the deal could come sometime Tuesday.
Inclusive of fines and fees, it will be the largest amount put to a single company in U.S. history.
The WSJ noted that the most complex part of the deal was the consumer relief component. JPMorgan will pay from $1.5 to $1.7 billion to wire-down principal amounts on company-held loans and up to $500 million will go to forbearance. Another $2 billion in relief will go towards different measures, sources said.
JPMorgan also said it wouldn't pursue receivership from the Federal Deposit Insurance Corp. (FDIC) in the $13 billion agreement.
Shares of JPMorgan are indicated higher Tuesday morning.
The WSJ noted that the landmark settlement was reached Monday as the final piece of the agreement was hammered out. The hangup involved terms on $4 billion worth of aid JPMorgan will need to dole out to distressed homeowners.
An announcement on the deal could come sometime Tuesday.
Inclusive of fines and fees, it will be the largest amount put to a single company in U.S. history.
The WSJ noted that the most complex part of the deal was the consumer relief component. JPMorgan will pay from $1.5 to $1.7 billion to wire-down principal amounts on company-held loans and up to $500 million will go to forbearance. Another $2 billion in relief will go towards different measures, sources said.
JPMorgan also said it wouldn't pursue receivership from the Federal Deposit Insurance Corp. (FDIC) in the $13 billion agreement.
Shares of JPMorgan are indicated higher Tuesday morning.
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