JP Morgan, DOJ Reach Tentative $13 Billion Deal
(WASHINGTON) -- The United States Department of Justice and JP Morgan Chase & Co have reached a tentative deal that would have JP Morgan pay $13 billion.
According to a source familiar with the negotiations, the details are not finalized, but the tentative deal was struck Friday night in a conference call between Attorney General Eric Holder, Acting Associate Attorney General Tony West, JP Morgan Chief Executive Officer Jamie Dimon, and JP Morgan General Counsel Stephen Cutler.
As of a week ago, JP Morgan was offering to pay only $11 billion, and for the past two weeks a "sticking point" has been Dimon's demand that any agreement over civil matters include a non-prosecution agreement from the Department of Justice, agreeing not to criminally prosecute anyone at JP Morgan for misrepresenting the quality of mortgages to investors.
In a call a week ago, Holder told Dimon that was "a non-starter."
In the call Friday night, Dimon indicated that he would give up that demand.
As part of the tentative deal, JP Morgan has to assist the Department of Justice with obtaining information and evidence related to individuals who allegedly misrepresented the quality of mortgages to investors.
This is the largest, single payment by a US company ever.
In the $13 billion deal, $9 billion is in penalties and fines, while the other $4 billion goes towards consumer assistance.
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