What’s in store for JPMorgan Chase & Co (NYSE:JPM)?
JPMorgan Chase & Co (NYSE:JPM) is facing numerous probes into its mortgage-practices. On Tuesday, there was news that it is seeking a global-settlement with the United States government authorities in different jurisdictions. California Federal Prosecutors delayed the decision to file a suit and negotiations with the Justice Department are now underway.
This settlement which is a global one will cover investigations into the company’s mortgage business. In addition it will cover probes of some similar operations that it had acquired from other banking institutions when the financial crisis enveloped the country. These investigations include criminal and civil authorities from the Department of Justice.
Specifically, the case in California revolved around bond sales that had the backing of sub-prime mortgages. This included some risky home loans that had been provided from 2005-2007. At the outset, the negotiations in California crumbled over the actual penalty amount that JPMorgan Chase & Co (NYSE:JPM) would have to pay.
The HUD issue
In the meantime, on Tuesday, the HUD department took issue with a different report in a certain publication. The report stated that it has demanded a settlement of $20 billion from JPMorgan Chase & Co (NYSE:JPM) over its mortgage-practices. The agency said that there was no truth in this matter. Helen Kanovsky, the General Counsel of the HUD said that the department takes all the allegations against the bank very seriously, but the $20 billion settlement figure was never floated by anyone at the agency.
Moving out of trouble zone
The California litigation did not involve the housing agency in any way. People in the know said that fact that the HUD is involved in the talks only indicates that JPMorgan Chase & Co (NYSE:JPM) and the government are eager to resolve the various probes in a bigger settlement. Some experts aver that this new settlement move looks like a major effort on the part of the bank to disentangle itself from all the legal troubles that it has been facing