JPMorgan and Justice Hit $13 Billion Snag

JPMorgan and Justice Hit $13 Billion Snag (YahooFinance)

Just as JPMorgan Chase & Co. (JPM) and the U.S. Justice Department seemed ready to ink their record-setting $13 billion settlement, the deal hit a new snag. At issue now is whether or not JPMorgan Chase is liable for the mistakes made by failed mortgage lender Washington Mutual, the company which JPM bought during the financial crisis. The New York-based bank is looking to have criminal inquiries into Mutual’s dealings shut down, so it’s not liable for more damages down the road. While this is a stumbling block, negotiations for the settlement are still ongoing. Something else that’s still ongoing is the drain on JPMorgan Chase’s coffers as this wrangling with Justice continues. Third quarter earnings for JPM reflect a loss of $0.4 billion, leaving Chase investors longing for the warmth of a settlement.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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