JPMorgan Offers $4B To Exit FHFA's Toxic MBS Suit

Law360, San Francisco (October 18, 2013, 7:17 PM EDT) -- JPMorgan Chase & Co. is tentatively offering to pay $4 billion to settle claims it misrepresented the quality of mortgage-backed securities it sold to Fannie Mae and Freddie Mac before the 2008 financial crisis, according to a news report Friday.

Sources close to the deal told the Wall Street Journal on Friday that the bank had reached the deal with the Federal Housing Finance Agency — less than the $6 billion the FHFA had initially sought. But the settlement likely won't go through until the bank...
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