JP Morgan reportedly reaches $4 billion settlement for claims over mortgage bonds

BY newsdesk  October 18, 2013 at 5:35 PM EDT

TIMOTHY A. CLARY/AFP/GettyImages

The Wall Street Journal reported that JPMorgan Chase & Co reached a tentative $4 billion deal with the U.S. Federal Housing Finance Agency to settle claims that the bank misled Fannie Mae and Freddie Mac about the quality of mortgages it sold them during the housing boom.

The deal is for less than the $6 billion initially sought.

A spokesman for both JPMorgan and FHFA declined to comment or provide guidance to the PBS NewsHour.