After months of intense negotiations, JP Morgan and the U.S. Department of Justice finally announced a civil settlement for which the nations’s biggest bank would pay $13billion for its risky mortgage practices that led to the financial crisis in 2008.
The settlement is the largest ever reached between the government and a corporation and it comes as the White House has been critizised from all sides for not doing enough to give a lesson to big bankers after the crisis. The question is, will this be a starting point?
“JP Morgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm’s behavior,” Attorney General Eric H. Holder Jr. , said.
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