JPMorgan in $4 billion deal with U.S. housing agency

[FuzzyLumpkins]

(Reuters) - JPMorgan Chase & Co (JPM.N) has reached a tentative $4 billion deal with the U.S. Federal Housing Finance Agency to settle claims that the bank misled government-sponsored mortgage agencies about the quality of mortgages it sold them during the housing boom, according to a person familiar with the matter.

JPMorgan and the FHFA, which is pursuing claims on behalf of finance agencies Fannie Mae and Freddie Mac, have agreed on the amount as a tentative part of a potential $11 billion global settlement with government agencies, including the U.S. Department of Justice.

The $4 billion figure was first reported on Friday by the Wall Street Journal.

A spokesman for JPMorgan declined to comment as did a spokeswoman for the FHFA.

The bank and the Department of Justice have discussed a broader deal under which JPMorgan would pay $7 billion of cash and $

more @ http://www.reuters.com/article/2013/...99H0ZP20131018

[boutons_deux]

"The FHFA has sued JPMorgan over mortgage loans totaling some $33 billion. A $4 billion deal would amount to about 12 cents on the dollar, less than the 20-cent rate under an earlier settlement by Switzerland-based bank UBS AG (UBSN.VX), said Josh Rosner, managing director of Graham Fisher & Co, a New York research consultancy."



$4B? nothing but a standard, minuscule cost of non-stop, on-going criminal operations.

Meanwhile, the Fed is eating up all the toxic MBS from the lenders (aka QE) $85B/month, at mark-to-book or mark-to-market prices?