Settlement talks between the U.S. Justice Department and JPMorgan Chase are in danger of breaking down over the bank's demands that it avoid future criminal charges and that another government agency pay some of the $13 billion price tag, according to a person familiar with the negotiations.
Federal prosecutors have been working with JPMorgan for months to resolve allegations that the bank knowingly sold securities made up of low quality mortgages in the lead-up to the financial crisis. As of last week, the largest U.S. bank had agreed to a tentative $13 billion settlement that would expunge multiple government probes. Details of the agreement were being hashed out, but now the sides have reached an impasse.
Officials at the Justice Department and JPMorgan declined to comment.