JP Morgan Chase and the U.S. Justice Department still have to finalize the deal, which also requires the bank to cooperate with a continuing criminal probe into the bank's mortgage-backed securities in the run-up to the 2008 financial meltdown.
The settlement would represent the largest penalty ever paid by a single company. The $13 billion total would include $4 billion in aid for struggling homeowners, such as loan modifications.
A number of federal and state regulators claim that JP Morgan Chase misled investors about the quality of the mortgages it was selling between 2005 and 2007 When the so-called housing bubble burst in 2007, investors in those mortgages lost heavily.
The bank has set aside at least $23 billion in reserves to cover settlements and legal expenses related to its actions before and after the financial crisis.
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