JP Morgan Chase (JPM
) has reportedly resumed talks with the U.S. as the bank is on the verge of a lawsuit concerning its representation of mortgage-backed securities it sold from 2005 through 2007.
The subprime mortgage crisis has been a hot topic since the Great Recession. JP Morgan, among other financial institutions, is in focus as the U.S. notified that institution that it is ready to file a formalized complaint. It seems unlikely that the case will ever go to court as it appears JP Morgan is quite eager to settle the matter and shoulder a hefty fine.
The hits just keep coming for JP Morgan as it is still dealing with the trading loss brought on by the “London Whale” as well as a lawsuit two years ago that stemmed from its acquisition of Bear Stearns.
JP Morgan shares were down $1.14, or 2.27%, at Tuesday’s close. The stock is up 14% YTD.
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