JPMorgan said working to contain damage

Jamie Dimon likes to point out that JPMorgan was 'a port in the storm' during the financial crisis, but five years later, the bank now finds itself under the cloud of what could be one of the largest fines in U.S. history.

CNN Money reports that the firm is in negotiations with government officials over a possible settlement related to mortgage securities that JPMorgan and the firms it would later purchase, Washington Mutual and Bear Stearns, allegedly sold to investors while misrepresenting their quality.

The securities and related derivatives plunged in value as the housing bust hit and played a key role in causing the financial crisis.

The Justice Department has called for a settlement of at least $11bn, including a $7bn cash payment and $4bn worth of consumer relief. Beyond the financial hit, a settlement of this scale would deal another blow to the reputation of a bank renowned just a few years ago for its prudent management.

'It's (Dimon's) challenge to try and reclaim more of the status they had a couple years ago', said Mike Mayo, a prominent bank analyst at CLSA, a brokerage and investment firm. 'JPMorgan led the large banks through the crisis, but has had more than its share of problems in the last couple years'.

To access the complete CNN Money article hit the link below

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