JPMorgan Chase is nearing an agreement worth close to $6 billion with a group of institutional investors to settle claims over shoddy mortgage-backed securities issued in the run-up to the financial crisis, a source familiar with the talks said.
Representatives of JPMorgan, headed by Jamie Dimon, and the investors met on 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 US government that would resolve a raft of civil actions brought by several enforcement agencies.
The group of more than a dozen bondholders includes BlackRock, Allianz SE’s Pacific Investment Management and Neuberger Berman, the source said.
Kathy Patrick, a lawyer for the investors group, did not immediately respond to requests for comment. JPMorgan also was not immediately available outside regular business hours.