Regulator Announces Own Pact With JPMorgan
Source: New York Times
A federal regulator that helped forge a tentative $13 billion settlement with JPMorgan Chase split off with its own deal on Friday, extracting a $4 billion payout from the nation’s biggest bank.
The regulator, the Federal Housing Finance Agency, ran ahead of its fellow regulators as the broader deal was slow to materialize.
That $4 billion was initially seen as a crucial element of the preliminary $13 billion settlement that JPMorgan reached last week. The deal, which the Justice Department has taken the lead in negotiating, would resolve an array of investigations from state and federal authorities that suspect the bank misled investors about the risks of mortgage securities it sold in the lead up to the financial crisis.
Friday’s settlement with the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, also includes $1.1 billion for mortgages that were sold by the bank to the two mortgage companies.
Read more: http://dealbook.nytimes.com/2013/10/25/regulator-announces-own-pact-with-jpmorgan/