How JPMorgan’s $13 Billion Settlement Stacks Up

Share:
In this May 11, 2012 file photo, people stand in the lobby of JPMorgan Chase headquarters in New York. JPMorgan Chase & Co. reports quarterly financial results before the market opens on Friday July 12, 2013.

In this May 11, 2012 file photo, people stand in the lobby of JPMorgan Chase headquarters in New York. JPMorgan Chase & Co. reports quarterly financial results before the market opens on Friday July 12, 2013. (AP Photo/Mark Lennihan, File)

November 19, 2013

JPMorgan Chase has agreed to a landmark $13 billion civil penalty to resolve an array of state and federal investigations into the sale of risky mortgage products in the run-up to the financial crisis.

The agreement, announced Tuesday, represents the largest penalty ever levied against any company, and follows years of criticism that the U.S. has not been aggressive enough in its response to the crisis. Authorities have come under fire for being too lenient in recent Wall Street settlements, but in its agreement with JPMorgan, the government has won a penalty worth more than half of the firm’s 2012 income.

“Without a doubt, the conduct uncovered in this investigation helped sow the seeds of the mortgage meltdown,” Attorney General Eric Holder said in a statement. “JPMorgan was not the only financial institution during this period to knowingly bundle toxic loans and sell them to unsuspecting investors, but that is no excuse for the firm’s behavior.”

Below is a breakdown of how the agreement compares to other major settlements reached in the five years since the meltdown:


In order to foster a civil and literate discussion that respects all participants, FRONTLINE has the following guidelines for commentary. By submitting comments here, you are consenting to these rules:

Readers' comments that include profanity, obscenity, personal attacks, harassment, or are defamatory, sexist, racist, violate a third party's right to privacy, or are otherwise inappropriate, will be removed. Entries that are unsigned or are "signed" by someone other than the actual author will be removed. We reserve the right to not post comments that are more than 400 words. We will take steps to block users who repeatedly violate our commenting rules, terms of use, or privacy policies. You are fully responsible for your comments.

blog comments powered by Disqus

More Stories

As America Nears 200,000 COVID Deaths, President Trump’s Early Approach to the Virus Draws Scrutiny
“This unwillingness to think about the implications meant that there was no strategic planning going on,” John Bolton says in a scene from FRONTLINE’s "The Choice 2020: Trump vs. Biden."
September 21, 2020
In Wake of Ruth Bader Ginsburg’s Death, McConnell Reverses Course on Supreme Court Vacancy; Vows Vote on Nominee
It’s a markedly different approach than he took in the previous presidential election year of 2016, when a different Supreme Court justice died more than eight months before voters went to the polls.
September 19, 2020
Handling of Public Protests a 'Stress Test' for Police Reform
Violent outbursts have marked the period of unrest since George Floyd died May 25, after Minneapolis police officer Derek Chauvin pinned the 46-year-old Black man to the ground by his neck. In many cases, police have responded with force to disperse protesters, captured on cameras nationwide — including in Cleveland, Chicago, Seattle and Portland, all cities that were already under court-enforced agreements to reform their police departments. Independent monitors overseeing those agreements say it's possible police could find themselves out of compliance for how they've responded to the recent unrest.
September 18, 2020
Amid George Floyd Protests, a Critical Question: Can the Feds Fix American Policing?
As millions of people rallied in the streets this summer demanding an end to police violence, more than a dozen cities were quietly working on their own police reform process — in conference rooms and court hearings.  
September 16, 2020