Days after the U.S. Department of Justice rejected a JPMorgan Chase offer in talks over a $13 billion settlement over the bank’s sale of mortgage-backed securities, negotiations are back on track.
Negotiators from both sides will likely agree on final terms this week, people familiar with the situation said. Specifically, they are making progress regarding who is responsible for liabilities tied to Washington Mutual, the failed bank that JPMorgan acquired in the wake of the economic crisis. The bank’s vetoed offer involved offsetting the settlement with a reimbursement from the Federal Deposit Insurance Corporation, the Wall Street Journal reported.
The record settlement – which includes a $5.1 billion deal with the Federal Housing Finance Agency – addresses civil claims that JPMorgan misleadingly sold mortgage-backed securities prior to the onset of the 2008 recession, as previously reported. [WSJ] — Mark Maurer