JPMorgan nears multibillion-dollar mortgage settlement- NY Post

Reuters

CHICAGO, Sept 28 (Reuters) - JP Morgan Chase & Co could reach a multibillion-dollar deal as early as Tuesday,putting an end to the bank's woes from mortgage securitiesrelated investigations, the New York Post reported on Saturday.

The bank and government officials met earlier this week totry to negotiate a settlement in the $11 billion range toresolve many of the probes into how it sold mortgage bondsbefore the financial crisis, a source familiar with the mattertold Reuters.

Negotiations have involved the possibility of JP Morganpaying up to $7 billion in cash and $4 billion in consumerrelief - a large sum, but representing little more than half thebank's 2012 profit of $21 billion.

JP Morgan CEO Jamie Dimon met with U.S. Attorney GeneralEric Holder on Thursday. While it is unusual for a company CEOto meet with the head of the U.S. Justice Department, the bankis seeking to tamp down its legal difficulties.

The settlement, if it goes ahead, would likely includeclaims from the regulator of Fannie Mae and Freddie Mac, whichhas sought some $6 billion from the bank over risky mortgagesecurities sold to the government-sponsored entities, accordingto two people familiar with the matter, Reuters reported.

JPMorgan was saddled with about 70 percent of the debt innonperforming home loans during the financial crisis.

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