Calling it the largest settlement with a single entity in American history, the Justice Department on Tuesday announced a $13 billion settlement with banking giant JPMorgan to resolve claims related to its packaging, marketing, sale, and issuance of residential mortgage-backed securities. The settlement also pertains to securities sold by Bear Stearns and Washington Mutual prior to Jan. 1, 2009.
“JPMorgan 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,” said Attorney General Eric Holder in a statement. “The size and scope of this resolution should send a clear signal that the Justice Department’s financial fraud investigations are far from over. No firm, no matter how profitable, is above the law, and the passage of time is no shield from accountability.”
