DOJ Reaches $13B Settlement With JP Morgan

JP Morgan will pay $13 billion – the largest settlement with a single entity in history – for misleading investors about toxic mortgages, leading up to the 2008 financial collapse. The settlement, part of ongoing efforts by the Obama administration’s Financial Fraud Enforcement Task Force, does not absolve JP Morgan or its employees from possible criminal charges.  JPMorgan has acknowledged its employees packaged risky home loans into securities, then sold them without disclosing their low quality to investors.

“The size and scope of this resolution should send a clear signal that the Justice Department’s financial fraud investigations are far from over,” Attorney General Eric Holder said. “No firm, no matter how profitable, is above the law, and the passage of time is no shield from accountability.” Of the $13 billion, $4 billion will provide relief for consumers hurt by the financial crisis, including forgiving and modifying loans.