November 20, 2014
WASHINGTON (AP) - A person familiar with negotiations between the federal government and JPMorgan Chase & Co. says the bank has tentatively agreed to pay $13 billion to settle allegations surrounding the quality of mortgage-backed securities it sold in the run-up to the 2008 financial crisis.
The person tells The Associated Press that the tentative settlement was negotiated Friday night. The person spoke on condition of anonymity because the deal has not been made final.
The person says the tentative agreement does not extend to a criminal investigation of the bank's conduct that is being handled by federal prosecutors in Sacramento, Calif.
The person says those negotiating the deal are Attorney General Eric Holder, Associate Attorney General Tony West, J.P. Morgan CEO Jamie Dimon and the bank's general counsel, Stephen Cutler.