FINANCIAL TIMES: …The $11bn comprises $7bn cash and $4bn of mortgage relief for struggling homeowners as penalties for allegations that the bank packed mortgage-backed securities with faulty home loans in the run-up to the crisis.
JPMorgan has already paid $5.3bn to settle allegations from US regulators and states that it used flawed processes to seize the homes of delinquent borrowers, and its legal costs since the crisis are well into eight figures.
Crucially, the deal, which is expected to be agreed formally within days, would resolve a multibillion-dollar claim from the Federal Housing Finance Agency for alleged mis-selling of mortgage securities, which was seen as the single biggest legal threat to the bank. The FHFA declined to comment… (more)
