DOJ rejects JPMorgan offer in $13B settlement talks

October 30, 2013 03:10PM

JPMorgan Chase’s $13 billion mortgage bond settlement, which includes a $5.1 billion deal with the Federal Housing Finance Agency, is in jeopardy.

The bank proposed offsetting the settlement with a reimbursement from the Federal Deposit Insurance Corporation, which federal officials rejected. The thumbs down from the U.S. Department of Justice could derail the expansive settlement.

Insiders, however, told the New York Post that the deal could still be finalized by the end of the week.

“Nothing’s changed from last week,” one source told the Post. “Talks are still on track.”

The record settlement addresses civil claims that JPMorgan misleadingly sold mortgage-backed securities prior to the onset of the 2008 recession. [NYP]Julie Strickland