JPMorgan's settlement talks with the FDIC hit a roadblock
JPMorgan Chase (JPM) was nearing a possible $11 billion settlement with the government over outstanding mortgage issues, but the firm's relations with the Federal Deposit Insurance Corp. may have stalled the deal. Settlement talks reportedly hit a roadblock when the bank and the FDIC began arguing over JPMorgan's responsibility for losses tied to the former Washington Mutual. Per Reuters:
The dispute, between the largest U.S. bank and the FDIC, could leave the federal agency on the hook for billions the bank is expected to pay as part of the settlement and substantially reduce the amount of the penalty JPMorgan actually pays to the government, some analysts said.
JPMorgan is seeking a "global" settlement of federal and state mortgage-related probes that could involve a payment of $7 billion in cash plus $4 billion for consumers, according to other people familiar with negotiations.