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JP Morgan has reached a tentative deal of $13 billion with the US government

Reuters/Gary Cameron
For Jamie Dimon, the Department of Justice looms large.
  • Lauren Alix Brown
By Lauren Alix Brown

Director of Special Projects

Published This article is more than 2 years old.

In what would be the largest settlement a company has ever made with the US government, JP Morgan has reportedly reached a tentative deal of $13 billion with the US Justice Department for investigations into its residential mortgage-backed securities business, according to the Wall Street Journal.

The deal includes a $4 billion agreement with the Federal Housing Finance Agency to settle claims that the bank misled Fannie Mae and Freddie Mac about the quality of loans sold before the financial crisis.

The tentative settlement will not end investigations into the bank’s issuance of mortgage-backed securities between 2005 to 2007.

Last month, CEO Jamie Dimon met with Attorney General Eric Holder in an attempt to move the conversation forward on investigations into the bank’s role in the housing crisis.  JP Morgan reported its first quarterly loss under Dimon thanks to massive legal expenses.

As Quartz has reported, the bank is now spending more money on fines and legal fees than employees’ salaries.

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