he $13bn (£8.07bn) agreement, $9bn will be extended in cash. This will be split into a $2bn civil fine, while $7bn will be accounted for by compensatory payments to organisations and states.
The other $4bn will be extended in borrower relief, through principal reduction and forbearance, which will be paid by 2017. Payments include:
$1.4bn to the National Credit Union Administration (NCUA)
$515.4m to the Federal Deposit Insurance Corporation (FDIC)
$4bn to the Federal Housing Finance Agency (FHFA)
$298.9m to the state of California
$100m to Illinois
$34.4m to Massachusetts
$19.7m to Delaware
$613.8m to New York
Civil enforcement investigations related to JP Morgan’s residential mortgage backed securities (RMBS), by the Department of Justice, state attorney generals from California, Delaware, Illinois, Massachusets and New York are now terminated.
The deal also ends civil enforcement investigations into the defunct Washington Mutual and Bear Sterns’ RMBS activities. Both banks failed during the financial crisis in 2008, and were then acquired by JP Morgan.