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Jamie Dimon Meets with Attorney General
JPMorgan chief executive Jamie Dimon met with Attorney General Eric Holder regarding the company’s mortgage-backed securities situation. An insider with knowledge of the situation spoke on anonymity. On the condition of anonymity, a government official familiar with ongoing negotiations among bank, federal and New York state officials, an $11 billion dollar settlement will resolve the claims against JPMorgan.
The Department of Justice is leading the settlement, which includes “$4 billion in consumer relief, and $7 billion in cash.” The DOJ is carrying on its investigation over MBS, which “lost value after a bubble in the housing market and helped spur the financial crisis,” according to Find Law. Federal task forces along with state law enforcement officials have led the pursuit of possible “wrongdoing with regard to mortgage backed securities.”
JPMorgan only last week finalized a settlement as it agreed to pay almost $1 billion dollars. The financial giant admitted its failure in oversight that led one trader, the infamous London Whale to make a $6 billion dollar loss last year. This settlement is one of the largest fines that has ever been imposed on a financial institution. In spite of the losses and the giant settlement, JPMorgan is still ahead of the curve as it recorded more than $6 billion dollars in revenue this Quarter.