JPMorgan Chase Will Pay $13 Billion In Record Settlement
In an agreement settling many U.S. claims over its sale of troubled mortgages, JPMorgan Chase will pay a record $13 billion, in a deal announced by the Justice Department Tuesday. The plan includes a $4 billion payment for consumer relief, along with a payment to investors of more than $6 billion and a large fine.
The latest updates on this story are at the bottom of this post. We've also added a few key points to the main post.
JPMorgan Chase brought in nearly $24 billion in revenue last quarter, but it still reported a net loss of $400 million, widely attributed to legal fees. The company's settlements since January add up to at least $20 billion.
$13 billion: The investment company is expected to reach a settlement Tuesday related to its risky mortgage-backed securities.
$4.5 billion: Several days ago, the company agreed to pay investors — including 21 major institutions — for the faulty securities.
$1 billion: In September and October, it paid to end investigations into the botched financial transactions of traders in London that cost the company more than $6 billion.
$389 million: In September, the bank refunded money to 2.1 million credit-card customers and paid a fine after allegedly misleading and overcharging them.
$300 million: In September, it resolved an insurance lawsuit, splitting payment with Assurant Inc.
$410 million: In August, it settled allegations that it manipulated U.S. energy markets.
$842 million: In June, it agreed to forgive debt owed to it by Jefferson County, Ala., where the company's securities deals led to the county's bankruptcy in 2011.
$8.5 billion: In January, 10 banks, including JPMorgan, split a settlement related to wrongful home foreclosures.
$9.2 billion: The company's legal fees from its third quarter this year
Federal investigations continue into its hiring practices in Asia and its relationship to Bernie Madoff's financial Ponzi scheme.
-Emily Siner