JPMorgan in settlement talks with agencies

JPMorgan Chase, under investigation and facing litigation from at least seven federal agencies over its sale of subprime mortgage securities from 2005 to 2007, is in negotiations to settle with the agencies, according to a report in the New York Times.
 
Early negotiations include proposals requiring JPMorgan to pay from $3 billion to $7 billion in fines and to provide financial relief to affected homeowners. The bank’s discussions with the Justice Department, the Department of Housing and Urban Development and other agencies also include which pending lawsuits and investigations to put in the settlement.
 
Individuals briefed on the talks said the terms of the settlement are in flux and the negotiations could still fall apart. JPMorgan is also wrestling with the fallout of either settling with the agencies for several billion dollars, or fighting the litigation, which could drag into years of expensive court battles.

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