JP Morgan nearing $13bn record banking fine over mis-selling
US investment bank JP Morgan has reached a deal with the US Justice Department to pay a $13 billion (£8 billion) fine over the mis-selling of bad mortgage debts to investors, prior to the 2008 financial crisis.
The misconduct was brought to light when US regulators began investigations into the mortgage industry. The fine, once confirmed, will be the biggest ever handed out by the US government to a bank.
JP Morgan is accused of being dishonest with investors about the scale of bad mortgage securities.
It is believed that the total figure comprises a $9 billion fine with $4 billion going towards easing the pressure on struggling homeowners.
This is the latest in a string of fines imposed on JP Morgan by UK and US regulators.
Last week, the bank accepted a $100m fine over its part in the “London Whale” scandal, which saw French-born trader Bruno Iksil create losses of $6 billion through unauthorised trading strategies.
The bank had already previously paid fines of $920m to UK and US regulators relating to the incident, but the delay was said to be due to fears by JP Morgan that it would stimulate further complaints.
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