JPMorgan Chase & Co. (NYSE:JPM) is nearing a $6 billion deal with a group of institutional investors to settle claims that it sold them substandard mortgage-backed securities before the 2008 financial crisis, a source familiar with the talks told Reuters Tuesday evening.
Representatives of JPMorgan and the investors met Friday to discuss the settlement, though the two sides have not yet agreed to formal terms, the source said.
The potential deal is separate from the preliminary $13 billion settlement JPMorgan has reached with the U.S. government that would resolve civil actions brought by a number of enforcement agencies.
Earlier Tuesday, Reuters reported that that $13 billion settlement with the government could end up costing the bank closer to $9 billion after taxes, because the majority of the deal is expected to be tax-deductible. The deduction also means the government is getting less than it appears in the deal.
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