JP Morgan in talks to settle probes for $11bn

Oliver Smith
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JP MORGAN Chase is in talks with US officials to settle federal and state mortgage probes for $11bn (£6.8bn), two people familiar with the matter said yesterday.

The sum could include $7bn in cash and $4bn for consumers, said the sources, who asked not to be identified because the negotiations are private.

The talks are fluid and ongoing so the $11bn figure could change, the people familiar with the matter said. They said groups involved in the discussions include the US Department of Justice, the Securities and Exchange Commission, the US Department of Housing and Urban Development and the New York State Attorney General.

The New York prosecutor’s office is participating in the talks because it is part of a working group formed by President Obama in 2012 to investigate misconduct in mortgage securities that contributed to the financial crisis.

JP Morgan disclosed in August that lawyers from the US Department of Justice in the Eastern District of California had preliminarily concluded that the company violated securities laws in the sale or securities backed by subprime or risky mortgage loans.