JPMorgan said to be nearing record $13 billion settlement over mortgage practices

Julie C. Nichols General

Dallas Morning News – Wire Reports

JPMorgan Chase has reached a tentative agreement with the Justice Department to pay a record $13 billion to resolve allegations that it knowingly sold faulty mortgage securities that contributed to the financial crisis, a person familiar with the talks said Saturday.

The agreement to pay the penalty would cap weeks of heated negotiating and underscore the extent of the bank’s legal woes.

If finalized, the deal would be the largest penalty ever paid by a single company. The agreement would represent a tremendous win for the government after years of public criticism over its struggle to hold Wall Street accountable for its crisis-era misdeeds.

It would also leave JPMorgan and its executives at risk of criminal prosecution, a humbling concession.

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