Where JP Morgan $13 billion stacks up against the biggest bank fines globally
This week, JP Morgan hammered out a tentative deal with the government to pay $13 billion over its mortgages practices. Here’s what the biggest bank fines were before this week:
Here’s how those fines stack up by year since the financial crisis:
Historically, JP Morgan’s settlement is enormous — but it’s not necessarily unfair, Peter Eavis writes:
While the overall sum is large, the money will flow to different parties. The largest sum, more than $6 billion, will serve as compensation for investors like pension funds that suffered losses from mortgage securities sold by JPMorgan, Bear Stearns and Washington Mutual, people briefed on the settlement talks said.
Another $4 billion will take the form of relief for struggling homeowners in cities like Detroit. The payout will serve as penance for the bank’s general mortgage practices, and does not stem from any particular mortgage securities or institution, according to one of the people briefed on the talks.
The remaining $2 billion to $3 billion will represent the only fine in the case, according to the people briefed on the talks.
In addition, Reuters reports that most of the settlement will be tax-deductible, making the hit to the bank closer to $9 billion.