ALBANY, New York (AP) An $11 billion national settlement is under discussion to resolve claims over JPMorgan's handling of mortgage-backed securities in the run-up to the recession, said a government official familiar with ongoing negotiations among bank, federal and New York state officials.
The Department of Justice is taking the lead on the settlement, which would include $7 billion in cash and $4 billion in consumer relief, said the official, who spoke Wednesday with The Associated Press on the condition of anonymity because a settlement hasn't been reached and the official wasn't authorized to discuss it publicly.
The government has continued investigating JPMorgan over mortgage-backed securities, which lost value after a bubble in the housing market burst and helped spur the financial crisis.
The company declined to comment Wednesday.
In January 2012, a task force of federal and state law enforcement officials was established to pursue wrongdoing with regard to mortgage securities.