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JP Morgan settlement set to soar to $11bn
by James Phillipps on Sep 26, 2013 at 08:01
JP Morgan faces paying out a record $11 billion to settle a series of federal and state investigations into its mortgage securities, but is not expected to admit liability.
This figure includes $4 billion of relief for borrowers struggling to meet their payments, according to Bloomberg. Reports yesterday had quoted the $4 billion figure as the total the bank would have to pay out, but this has surged as a number of claims have been bundled together.
The mammoth payout comes on top of the $5.3 billion it has already stumped up to settle claims from the US regulators that it unfairly seized homes of homeowners in arrears and the $920 million fine paid for the ‘London whale’ trading losses and subsequent cover-up.
Reports suggest the $11 billion figure is close to being agreed but JP Morgan is resisting any admission of guilt to reduce the chance of private litigation being taken out against it.
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