Nov 19, 2013 10:45 PM by Jennifer Horbelt
ALBANY, N.Y. (AP) - JPMorgan Chase & Co. has reached a record $13 billion settlement with federal and state authorities.
The agreement resolves claims over the bank's sales of mortgage-backed securities that collapsed during the U.S. housing crisis. It is the largest settlement ever between the Department of Justice and a corporation.
The settlement requires JPMorgan to pay $9 billion and provide $4 billion in consumer relief, including principal reductions and other mortgage modifications for homeowners facing foreclosure.
Attorney General Eric Holder says JPMorgan knowingly bundled toxic mortgage-backed securities and sold them to unsuspecting investors, helping to "sow the seeds of the mortgage meltdown."