More JP

Posted by kevin on October 19, 2013 under Foreclosure Blog | Comments are off for this article

In our last episode, JP Morgan Chase and the Feds were talking in terms of an $11 billion settlement of the various claims against JP Morgan. Yesterday, the Wall Street Journal reported that JP Morgan settled with the FHFA for $4 billion based on misrepresentations concerning the quality of mortgages underlying bonds sold to Fannie and Freddie. Bloomberg has just come out with a story that says that JP Morgan is in the process of finalizing a $13 billion settlement with the Feds (includes the $4 billion to FHFA) which will cover all Federal claims (except possible criminal action against individuals) and all claims being raised by NY AG Eric Schneiderman.

Nothing in either report indicates whether and how much of the settlement will be used for loan modifications.

JP Morgan took a $7.2 billion charge against 3d quarter earnings relating to legal issues. Clearly, the bank is trying to rapidly put its legal problems and the money associated therewith behind it so that it could move forward. The Bloomberg piece says that not only has Jaime Dimon, the CEO of JP Morgan, and Eric Holder, the US Attorney General.

We can expect confirmation of the settlement with all of its terms within the next few days.