Advertisement

JPMorgan to pay $4 billion in consumer relief in government deal

JPMorgan's mortgage-backed securities settlements add up, this time to the benefit of the consumer.

By Sonali Basak
JPMorgan Chase and Company CEO Jamie Dimon faces rising legal costs, and $4 billion has been agreed on Monday. (File/UPI/Yuri Gripas)
JPMorgan Chase and Company CEO Jamie Dimon faces rising legal costs, and $4 billion has been agreed on Monday. (File/UPI/Yuri Gripas) | License Photo

Nov. 18 (UPI) -- JP Morgan aims to make good with its mortgage-backed securities settlements. Within the record $13 billion settlement JP Morgan is to pay to the government, the bank will offer a $4 billion consumer relief package, as reported Monday.

The bank announced Friday another $4.5 billion deal with 21 private investors, unrelated to the government agreement. JP Morgan announced this as an "important step" in clearing up MBS-related matters. This settlement addressed MBS trusts sold by Bear Stearns, Chase and JPMorgan before the financial crisis, but not those sold by Washington Mutual.

Advertisement

And while Friday's announcement was to the benefit of investors, Monday's announcement is to the benefit of consumers.

The $4 billion in the consumer relief package will aid those struggling with mortgage payments by issuing mortgage write-downs and forebearance, where mortgage terms are restructured. This relief could be used to aid distressed neighborhoods and demolish abandoned homes.

Shares inched upward Friday, and again Monday, in response to the news. And despite extensive legal woes, shares have remained relatively stable.

The bank also announced $4 billion to be paid to the Federal Housing Finance Authority last month, and it has $23 billion reserved for litigation.

Advertisement

[Wall Street Journal] [Forbes] [NY Times]

Latest Headlines

Advertisement

Trending Stories

Advertisement

Follow Us

Advertisement