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JPMorgan Said To Reach $13 Billion U.S. Mortgage-Bond Settlement

Publication Date: 
October 20, 2013
The Washinton Post
Tom Schoenberg, Dawn Kopecki, Hugh Son and Dakin Campbell

Stanford Law Professor Joseph Grundfest is quoted in The Washington Post on JPMorgan's settlement with the U.S. government and how there's probably "a sense of chagrin at JPMorgan" due to the government's role in the dispute. 

JPMorgan Chase & Co.’s record $13 billion deal to end U.S. probes of its mortgage-bond sales would free the nation’s largest bank from mounting civil disputes with the government while leaving a criminal inquiry unresolved.

The tentative pact with the Department of Justice increased from an $11 billion proposal last month and would mark the largest amount paid by a financial firm in a settlement with the U.S. The deal wouldn’t release the bank from potential criminal liability, at the insistence of U.S. Attorney General Eric Holder, according to terms described by a person familiar with the talks, who asked not to be named because they were private.


“The settlement probably comes with a sense of chagrin at JPMorgan,” said Joseph Grundfest, a former SEC commissioner who’s now a professor of business and law at Stanford University Law School. “Many of the problematic transactions were done by banks that JPMorgan acquired during the financial crisis at the behest of the U.S. government -- not by JPMorgan itself.”