By Legal Times Staff
Updated at 7:58 p.m.
JP Morgan Chase & Co. has reportedly reached a tentative $13 billion settlement with the U.S. Department of Justice regarding certain issues related to its sale of residential mortgage-backed securities, according to a story first reported Saturday by The Wall Street Journal. The deal would not release the bank from criminal liability, however.
The Journal reported that the settlement, if finalized, would be the largest the federal government has ever made with a single company.
Bloomberg reported that the deal includes "$4 billion for unspecified consumer relief and $9 billion in fines and other payments."
A Justice Department spokeswoman declined to comment.
According to numerous media reports, the settlement happened Friday night during a call between U.S. Attorney General Eric Holder Jr., Assistant Attorney General Tony West, JP Morgan chief executive officer Jamie Dimon and JP Morgan general counsel Stephen Cutler. The deal would resolve civil allegations but would not end the criminal probe.
Reuters quoted a source as saying the settlement is likely to be finalized but could still fall through.
JP Morgan's legal troubles, including government investigations, have generated millions in legal fees for several top law firms. As reported by Am Law Daily, the bank has set aside $23 billion for litigation costs.