JPMorgan Chase & Co (NYSE:JPM) is meeting with Attorney General Eric Holder today, according to reports that came in this morning. The two are meeting up in order to figure out the finer points of a large settlement deal related to the investment bank’s role in the 2008 financial crisis. The regulatory matter is just one of many that JPMorgan Chase & Co (NYSE:JPM) has been dealing with in recent months.
According to Fox Business, the deal that Mr. Dimon is discussing with the attorney general could result in a settlement exceeding $11 billion. That would be a massive hit to shareholders in the company, but it would reduce uncertainty at the bank as it deals with several probes into its investment activity.
$11 billion JPMorgan settlement
The deal being talked about this morning is in relation to the way that JPMorgan Chase & Co (NYSE:JPM) packaged and sold mortgages in the lead up to the 2008 financial crisis. Reports emerged earlier this week that the deal would include a $7 billion cash settlement and an additional $4 billion in relief to consumers.
It is clear that the two parties were a long way from a settlement, but the high level nature of this morning’s talks indicate that the bank may be closer to agreeing to a settlement than was previously believed. The negotiations are one of the many cases emanating from the Department of Justice in relation to the financial crisis.
The settlement is being negotiated in an effort to avoid bringing the case to court. If talks fail, the case may be borne out in the courts. That would add to uncertainty for JPMorgan Chase & Co (NYSE:JPM) as it faces more cases from U.S. regulators.
JPMorgan regulatory problems
JPMorgan Chase & Co (NYSE:JPM) recently announced that it had reached a settlement with regulators in the United States and the United Kingdom in relation to the London Whale trades that rocked the investment bank last year. The bank paid a total of $920 million to regulators in that case.
There are other cases currently underway against JPMorgan Chase & Co (NYSE:JPM), including one in relation to its influence over the commodities market and another that relates to its hiring practices in China. JPMorgan Chase & Co (NYSE:JPM) shareholders are dealing with a great deal of uncertainty. If today’s deal does not form, they’ll be dealing with a great deal more.