Egypt's electricity minister, Copelouzos Group discuss progress on Egypt–Greece power interconnection    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Prime Developments, Osoul for Tourism Development launch EGP 1.25bn CLAN project in Hurghada    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Total financing by FRA-regulated entities hits EGP 640.1bn in June 2025    Egypt aims to restore gas output, reach self-sufficiency by 2027: PM    EGP climbs vs USD in Wed.'s trading close    Egypt, Saudi Arabia reject Israeli plan to occupy Gaza    Egypt prepares to tackle seasonal air pollution in Nile Delta    27 Western countries issue joint call for unimpeded aid access to Gaza    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Australia to recognise Palestinian state in September, New Zealand to decide    Egypt, Huawei explore healthcare digital transformation cooperation    Global matcha market to surpass $7bn by 2030: Nutrition expert    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Oil rises on Wednesday    Egypt, Uganda strengthen water cooperation, address Nile governance    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Egypt, Malawi explore pharmaceutical cooperation, export opportunities    Korean Cultural Centre in Cairo launches folk painting workshop    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Jpmorgan In Talks To Settle Mortgage Probes: Source
Published in Amwal Al Ghad on 25 - 09 - 2013

JPMorgan Chase & Co, facing several investigations into its mortgage practices, is seeking a global settlement with U.S. government authorities in multiple jurisdictions, a person familiar with the matter said on Tuesday.
Negotiations have resumed with the U.S. Department of Justice after federal prosecutors in California delayed a plan to file a lawsuit there on Tuesday.
The global settlement would cover probes of JPMorgan's mortgage business, as well as investigations of similar operations it inherited from other banks during the financial crisis. The investigations include civil and criminal authorities from the DOJ.
The California case involved the sale of bonds backed by subprime mortgages and other risky home loans between 2005 and 2007.
The California negotiations initially broke down over the amount the bank would pay as a penalty, sources said.
Meanwhile, the Department of Housing and Urban Development took issue on Tuesday with a report in another publication that the agency was seeking a $20 billion settlement from the bank over its mortgage practices. The housing agency said that was "categorically false."
"The department takes the allegations against JPMorgan Chase seriously and has been involved in multi-party negotiations to reach a settlement. However, no one at this agency - including the secretary - ever floated a $20 billion settlement figure," HUD general counsel Helen Kanovsky said.
The planned California litigation did not involve HUD, and that agency's involvement in the talks suggest that both the bank and the government want to resolve multiple investigations in a larger settlement, according to people familiar with the matter.
Experts said the new move toward settlement talks appeared to be driven by a strong desire within the bank to move past its legal troubles as quickly as possible, but the Justice Department likely has the upper hand in the talks, given how close it came to filing the suit.
In a regulatory filing in August, JPMorgan disclosed it was under parallel civil and criminal investigations by federal authorities in California and that the authorities on the civil side told the bank in May they had preliminarily concluded it violated federal securities laws.
To observers, another legal battle is the last thing the largest U.S. bank needs as it struggles to move past conflicts with regulators and prosecutors involving several business lines.
"The way I see this, JPMorgan would like to avoid the continuing Chinese water torture of reputational damage they've been suffering," said Kathleen Wailes, senior vice president at LEVICK, a public relations and crisis-management firm in Washington.
"They would like to dispose of this in a settlement as opposed to a trial and get rid of this as quickly as they can to move on the more positive subjects," Wailes said.
On Thursday, JPMorgan agreed to pay $1 billion to settle regulatory actions related to a $6.2 billion trading loss it incurred last year in its Chief Investment Office and to allegations of wrongful billing of credit-card customers.
Last week's settlements were part of a new push by the bank to try to remake its public image into one displaying more deference toward regulators.
"The government is attacking very weak prey now," said Jonathan Macey, a corporate law professor at Yale Law School.
"I certainly don't think we can say JPMorgan is in a strong position because they've experienced such a relentless onslaught of legal and regulatory actions."
However, JPMorgan is financially strong and making record profits, despite the damage to its reputation, the expense of about $5 billion in annual legal costs, and government orders to fix its risk controls and legal compliance systems.
The company reported net income of $21.3 billion last year and analysts expect profits this year to be even higher.
JPMorgan's stock price on Tuesday was about 25 percent higher than before it disclosed in May 2012 that it was losing billions of dollars on its Chief Investment Offices' "London Whale" derivatives trade.
Chief Executive Officer Jamie Dimon said in a statement issued by the company on Thursday: "We have accepted responsibility and acknowledged our mistakes from the start, and we have learned from them and worked to fix them."
Source : Reuters


Clic here to read the story from its source.