For the past few years, JPMorgan (JPM) has faced an onslaught of legal charges. The cases it faces range from illegal hiring practices in China to the sale of misrepresented mortgage-backed securities (MBS) before the financial crisis of 2008. Keeping in mind the disregard of rules and regulations that the nation’s biggest banks have shown, regulators seem to have decided to make an example out of JPMorgan.
Last week on Tuesday, the Department of Justice (DoJ) slapped JPMorgan with a settlement deal worth $13 billion for selling MBS without adequately disclosing the risks. The settlement is worth almost half the annual profits made by JPMorgan and is the largest settlement amount recorded for a single corporation. The deal includes last month’s $4 billion settlement made with the Federal Housing Finance Agency (FHFA) for the securities JPMorgan had sold to Fannie Mae and Freddie Mac.
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