JPMorgan Settles with Justice Dept. for $13 Billion

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JPMorgan Settles with Justice Dept. for $13 Billion (Bloomberg)

After months of negotiation, JPMorgan Chase & Co. (JPM) has agreed to a $13 billion settlement with the U.S. government over the sale of its mortgage bonds. That figure includes a $4 billion settlement of the 2011 Federal Housing Finance Agency’s lawsuit, as well. However, the $13 billion figure will not break JPM’s financial back, as the financial giant has socked away more than $28 billion since 2010 to cover mounting legal costs. And it may need every penny of that because this settlement does not include a resolution to investigations of JPMorgan’s recruiting in Asia, energy trading and its relationship with Ponzi king Bernie Madoff. Investors will wait to see how those issues are resolved next.

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.