JPMorgan Chase & Co. Reaches $13 Billion Settlement with U.S. Justice Department (JPM)

JPMorgan Chase (JPM) and the U.S. Justice Department reached an agreement on Tuesday, settling a number of legal issues concerning the bank’s sales of low-quality mortgage-backed securities.

JP Morgan will pay a $13 billion settlement–the largest settlement with a single entity in U.S. history–to resolve both federal and state civil claims concerning MBSs sold prior to January 1, 2009. The overall settlement includes the $4 billion JP Morgan is required to pay in so-called consumer relief. The agreement, however, does not absolve JP Morgan or its employees from facing further criminal charges.

Commenting on the settlement, New York Attorney General Eric Schneiderman noted “Since my first day in office, I have insisted that there must be accountability for the misconduct that led to the crash of the housing market and the collapse of the American economy.”

Schneiderman also added “JPMorgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm's behavior.”

JP Morgan shares rose 0.80% during Tuesday’s session. Year-to-date, the stock is up 24.81%.