Reuters/file 2012 J.P. Morgan Chase's international headquarters in New York. The bank reportedly has agreed to pay $13 billion, the largest such payment of its kinds, to settle federal civil investigations of its mortgage-backed securities business. SAN FRANCISCO (MarketWatch) — J.P. Morgan Chase & Co. has reached a tentative $13 billion deal with the Justice Department to settle several investigations of its mortgage-backed securities business in what may be the largest single settlement of its kind, The Wall Street Journal reported Saturday.
The general outline of the agreement was struck late Friday in a phone call among Attorney General Eric Holder, Associate Attorney General Tony West and J.P. Morgan's general counsel, Stephen Cutler, according to the newspaper.
The settlement has not been completed and some issues remain to be resolved, including the final wording of the agreement, the Journal said.
The deal not resolve a continuing criminal probe of the J.P. Morgan's (JPM) conduct by federal prosecutors in Sacramento, Calif., the Journal said, citing an unnamed source.
Spokesman at the bank could not be reached Saturday, and the Justice Department did not immediately respond to a request for confirmation.
The deal with the DOJ is one of the many the bank has accepted as it tries to resolve its legal problems.
On Friday, the Journal reported that the bank agreed to pay roughly $4 billion to the Federal Housing Finance Agency to settle claims that it misled Fannie Mae (FNMA) and Freddie Mac (FMCC) about the quality of loans sold to them ahead of the 2008 financial crisis.
Separately, J.P. Morgan was earlier this week fined $100 million by the Commodity Futures Trading Commission for its role in the "London Whale" trading scandal involving credit default swaps.
Shares of J.P. Morgan edged up 0.2% to close at $54.30 on Friday.
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