OTHER PAYOUTS

JP Morgan Chase’s reported agreement comes in the wake of the bank’s admission of wrongdoing and an agreement to pay more than $1 billion in settlements with five regulatory agencies for its “London whale” trading debacle. The bank violated federal securities laws by failing to keep watch over London-based JPMorgan brokers’ activities and withholding key information from regulators. » JPMorgan has also paid billions of dollars in other settlements in recent years, including $1.2 billion in August 2012 as its share of a class-action lawsuit that alleged it was one of several banks that conspired to set the price of credit card and debit card interchange fees. of individuals tied to wrongdoing associated with the bank’s mortgage practices.

A breakthrough in long-running talks came Friday night, after U.S. Attorney General Eric Holder and JPMorgan CEO Jamie Dimon spoke by phone.

Bloomberg reports that the deal would include a tentative $4 billion settlement with the Federal Housing Finance Agency over the bank’s sale of mortgage-backed securities.

The tentative agreement would include $9 billion in fines and $4 billion in relief for struggling homeowners, The New York Times reported, citing people briefed on the talks.

New York Attorney General Eric Schneiderman’s office, which is involved in the settlement negotiations, declined to comment Saturday.

On Friday, the WSJ had separately reported that the bank had reached such a settlement with the FHFA over claims that it sold bad mortgages to government agencies ahead of the financial crisis.

The housing finance agency has accused JPMorgan Chase of misleading Fannie Mae and Freddie Mac about the quality of the mortgages it sold during the housing boom of the late 2000s.

Dimon met with Holder in September to negotiate a global settlement of the bank’s sales of residential mortgage-backed securities and suspect mortgages.

Some of the transactions involved Bear Stearns before JPMorgan acquired the investment bank in 2008.