J.P. Morgan has reportedly agreed to pay an £8bn ($13bn) fine as part of a settlement with the US over its role in the mortgage-backed securities market, which led to the near-collapse of the US financial system.
According to reports, J.P. Morgan has been in talks with the US Justice Department over its investigation which looked into sales of securities based on home loans. It is understood to have agreed a tentative deal which will see it pay the huge fine. The home loans the group sold were the type of loans that led to the financial crisis in 2007 as the value of properties fell sharply when the housing bubble burst. Borrowers who were lent much more than they could ever repay went bust when house prices started to tumble, leading to huge losses for banks and the subsequent bailout of l...
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