A JPMorgan Settlement May Impact Other Subprime Lenders



The Street reported that JPMorgan’s prospective $13 billion settlement with the Department of Justice over the bank’s origination of mortgages prior to the collapse of the housing market clouds a banking sector that is struggling to grow in a weak economic recovery.

The Street notes that JPMorgan’s legal woes are also germane to other large pre-crisis subprime lenders such as Bank of America, Citigroup, Morgan Stanley and Goldman Sachs and may pave the way for similar regulatory inquires and settlements across the banking industry.

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