JPMorgan In Talks To Settle Government Probes For $11 Billion: Reports

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JPMorgan Chase & Co is in talks with government officials to settle federal and state mortgage probes for $11 billion, according to published reports.

The entrance to JPMorgan Chase's international headquarters on Park Avenue is seen in New York

JPMorgan Chase & Co is in talks with government officials to settle federal and state mortgage probes for $11 billion, according to published reports.

The Associated Press, and then the Wall Street Journal, said on Wednesday afternoon that the settlement could include $7 billion of cash and $4 billion of relief for customers.

A JPMorgan spokesman declined to comment.

The company disclosed in August that lawyers from the U.S. Department of Justice in the Eastern District of California had preliminarily concluded that the company violated securities laws in the sale or securities backed by subprime and other risky mortgage loans.

Justice Department lawyers from other areas of the country and state authorities have also been probing JPMorgan's liability for mortgage securities sold by two other companies it acquired during the financial crisis, Bear Stearns and Washington Mutual.

The talks to reach a global settlement on the mortgage issues heated up this week after the U.S. Department of Justice told the bank that it was preparing to file a lawsuit on Tuesday.

JPMorgan is pressing to resolve its legal and regulatory issues after coming under intense scrutiny since disclosing in May 2012 that it was losing billions of dollars on derivatives trades from its London offices.

JPMorgan shares were up 2.7 percent for the day at the close of New York Stock Exchange trading on Wednesday.

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