JPMorgan and Justice Hit $13 Billion Snag
JPMorgan and Justice Hit $13 Billion Snag (YahooFinance)
Just as JPMorgan Chase & Co. (JPM) and the U.S. Justice Department seemed ready to ink their record-setting $13 billion settlement, the deal hit a new snag. At issue now is whether or not JPMorgan Chase is liable for the mistakes made by failed mortgage lender Washington Mutual, the company which JPM bought during the financial crisis. The New York-based bank is looking to have criminal inquiries into Mutual’s dealings shut down, so it’s not liable for more damages down the road. While this is a stumbling block, negotiations for the settlement are still ongoing. Something else that’s still ongoing is the drain on JPMorgan Chase’s coffers as this wrangling with Justice continues. Third quarter earnings for JPM reflect a loss of $0.4 billion, leaving Chase investors longing for the warmth of a settlement.