JP Morgan Chase, Feds Agree To $13 Billion Settlement

Source: CBS News

WASHINGTON – The Justice Department and JPMorgan Chase & Co. have reached agreement on all issues in a $13 billion settlement of a civil inquiry into the company’s sales of low-quality mortgage-backed securities that collapsed in value during the 2008 financial crisis, CBS News has confirmed.

The settlement is the largest ever reached between the government and a corporation. It eclipses the record $4 billion levied on the huge oil company BP in January in the worst offshore oil spill in U.S. history.

Details of the settlement were leaked and widely reported a few weeks ago. The finalized deal is expected to be announced Tuesday.

A person close to the talks told CBS News that the settlement addresses all civil issues in the case, but the Justice Department retains the right to continue a criminal investigation being conducted by the U.S. Attorney’s Office in Sacramento, Calif.

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