JP Morgan and Chase Company (JPM) on Monday settled down a $13 billion legal issue with the Justice Department. This settlement resolves a number of legal affairs for America’s largest bank. Apart from this, sources from the company also say that around $4 billion worth of aid to anxious homeowners which was holding up the deal was also finally completed on Monday.
The settlement, termed historic by many, ends a plethora of investigations and other lawsuits targeted at soured mortgage bonds which were issued before the financial crisis. This is the biggest ever combination of fines and damages that the U.S. government has ever extracted in a civil settlement.
The most difficult part of the settlement was the consumer-relief pact. Owing to the complexities in this segment of the settlement, the Justice Department sought the help of the Department of Housing and Urban Development for final negotiations. It took over a week for the negotiations to be made.
— Guru Focus