FDIC wants in on JPMorgan settlement, bogs down talks
The New York Post says the Department of Justice’s attempt to settle with JPMorgan Chase (JPM) over legacy mortgage issues is now stalled with another regulator jumping into the mix: the Federal Deposit Insurance Corp.
The FDIC, which insures bank deposits, decided to be a last minute Sally when jumping into the negotiations.
The New York Post explains:
The late arrival of the FDIC, which is primarily an insurer safeguarding bank deposits, has bogged down the settlement talks, sources said. Once thought ready to be signed this week, the JPMorgan-regulator settlement is now not expected until next week.
The FDIC, which has about $3 billion or $4 billion at issue with JPMorgan, was brought into the negotiations at the “11th hour,” said sources familiar with the situation.
Regulators and agencies already in on the settlement talks include the Justice Dept., the Securities and Exchange Commission, the New York and California state Attorneys General, the Federal Housing Finance Agency, and Fannie Mae and Freddie Mac.