Sources familiar with matter were quoted by Bloomberg News as saying that the US Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) will ink nearly $80m settlement agreement with JPMorgan, over both the issues.
It is believed that the settlement with JP Morgan, which previously revealed the credit card and identity-theft product probe, will be announced by next week.
In May 2013, California’s attorney general Kamala Harris filed a lawsuit against JP Morgan Chase & Co, accusing the firm for fraudulent execution and illicit debt-collection practices against tens of thousands of denizens of California.
The enforcement action claims that the bank was engaged in widespread, illegal ‘robo-signing’, as well as other illegal practices, and committed debt-collection abuses against nearly 100,000 California credit card borrowers over at least a three-year period.
Most recently, the company agreed to pay $18.3m to settle a lawsuit, which accuses that its Bear Stearns division failed to reveal the authentic interest rates on adjustable-rate mortgage documents.
The US bank is facing a string of legal cases, including infamous London Whale trading scandal.
Over the last two years, it has incurred nearly $10bn in legal cases and at the end of June 2013, it raised its estimate of losses to more than its reserves to $6.8bn from $6bn at the end of March 2013.
Recently, the US Federal Housing Finance Agency (FHFA) asked JP Morgan Chase to pay $6bn to settle cases over sale of bad mortgage bonds to government-backed finance companies.
