JPMorgan, NY, federal gov't reach $13B settlement
ALBANY, N.Y. (AP) - November 19, 2013 (WPVI) -- JPMorgan Chase & Co. has reached a record $13 billion settlement with federal and state authorities, resolving claims over the bank's sales of mortgage-backed securities that collapsed during the U.S. housing crisis.
It is the largest settlement ever between the Department of Justice and a corporation and marks a key chapter for the crisis.
The settlement announced Tuesday requires JPMorgan to pay $9 billion and provide $4 billion in consumer relief, including principal reductions and other mortgage modifications for homeowners facing foreclosure.
New York Attorney General Eric Schneiderman, who sued JPMorgan in 2012, says the state will get $613 million in cash and about $400 million in relief for struggling homeowners.
The deal resolves claims against JPMorgan, Bear Stearns and Washington Mutual before 2009.
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