Updated: Saturday, October 19, at 3:25 p.m.
JPMorgan Chase & Co. are near to settling a federal investigation into its mortgage practices through a tentative $13 billion deal with the U.S. Justice Department, reports the Wall Street Journal.
The record agreement includes JPMorgan Chase doling out approximately $4 billion to the Federal Housing Finance Agency on behalf of financial agencies Freddie Mac and Fannie Mae, which claimed the bank misled them in the quality of mortgages sold during the housing bubble, sources close to the discussions told the Journal.
The deal will require the bank to continue cooperating in an ongoing criminal probe, which Attorney General Eric Holder has refused to drop, related to the bank’s history of mortgage bonds sales and its role in the mortgage crisis that began in 2008.
The particular language of the deal is still being hammered out.
More recently JPMorgan Chase reported a third quarter net loss of $380 million on Oct. 11, citing legal costs.
This post was updated to reflect JPMorgan Chase & Co.’s tentative deal with the Justice Department.