$11B settlement likely topic for Holder, Dimon
By The Associated Press
Published: Thursday, Sept. 26, 2013, 8:15 p.m.
WASHINGTON — JPMorgan Chase & Co. chief executive Jamie Dimon met on Thursday with Attorney General Eric Holder about an investigation into the company's handling of mortgage-backed securities in the run-up to the recession.
Holder declined to characterize the hourlong discussions, but a government official familiar with ongoing negotiations said an $11 billion national settlement is under review to resolve claims against JPMorgan.
“I did meet with representatives of JPMorgan,” the attorney general said during a news conference being held on another topic.
“We have matters that are under investigation. I expect to be making further announcements in the coming weeks, the coming months,” Holder said. His comment was a general reference to probes the Justice Department has been carrying out for several years involving some of the nation's largest financial institutions, including JPMorgan.
Before and after the meeting with Holder, Dimon declined to answer when asked about the state of the discussions.
Other participants were Steve Cutler, JPMorgan's general counsel, and Rodgin Cohen, a partner in the Sullivan & Cromwell law firm. For the Justice Department, Deputy Attorney General James Cole and Associate Attorney General Tony West also participated.
The Department of Justice is taking the lead on the proposed $11 billion deal, which would include $7 billion in cash and $4 billion in consumer relief, said the government official, who spoke on condition of anonymity because a settlement hasn't been reached and the official wasn't authorized to discuss it publicly.
The mortgage-backed securities lost value after a bubble in the housing market burst and helped spur the financial crisis.
In January 2012, a task force of federal and state law enforcement officials was established to pursue wrongdoing with regard to mortgage securities.
In other cases, the Justice Department last month accused Bank of America Corp. of civil fraud in failing to disclose risks and misleading investors in its sale of $850 million in mortgage bonds in 2008. The Securities and Exchange Commission filed a related lawsuit. The government estimates that investors lost more than $100 million on the deal. Bank of America is disputing the allegations.
Last week, JPMorgan agreed to pay $920 million and admitted that it failed to oversee trading that led to a $6 billion loss last year. That combined amount, in settlements with three U.S. regulators and a British one, is one of the largest fines ever levied against a financial institution.
JPMorgan came through the financial crisis in better shape than most of its rivals, and CEO Dimon had charmed lawmakers and commanded the attention of regulators in Washington.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Expats renounce citizenship over U.S. tax hassles
- Obama gets in some golf on family trip to Key Largo
- Obama losing close adviser to end 9 years of service
- Parents of ‘spoiled’ teen urge her to return home
- World War II veteran receives once-declined Purple Heart
- Wikileaks founder teases about more secrets to be released
- Flubbed ‘stifling’ finally ends 29-round spelling bee
- El Nino could bring relief to U.S.
- Immigrant detainees on hunger strike
- Sullivan case still relied on in libel claims
- Oklahoma governor’s daughter regrets wearing Native American headdress