28-Dec-13
The largest U.S. bank JP Morgan Chase & Co. has agreed to pay $ 13 billion to resolve allegations of improper sales of mortgage investors , admit it frequently exaggerate the quality of the mortgage loans.
JP Morgan admitted that sales potential investors it bad mortgages , and who thought that their investment is safe. When a loan actually starts to deteriorate , investors lose the loyalty to the banking system, which exaggerates the real estate bubble and paved the way for the financial crisis.
The $ 13 billion , the agreement includes a $ 40 billion package of relief measures for Housing and Urban Development , and another $ 4 billion for the Federal Housing Finance Agency - operational foreign government loan financing companies Fannie Mae and Freddie Mac .
Civil settlement , JP Morgan Chase and the U.S. government end , which has been under tremendous pressure to solve the lender , " the global financial crisis has paved the road of intense negotiations between the long-running controversial practice.
The settlement is also a big relief JP Morgan Chase, has been frequently suffer decline in the value of the stock market , due to the charges and potential fines . Following the announcement of the settlement , JP Morgan shares rose 0.7 percent , to close at $ 56.15 shares on Tuesday.
The banking giant also announced that it had set aside all the money needed to cover the civil settlement , and the settlement of the transaction will not have any impact on its earnings .
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