U.S. Attorney General Eric Holder told government negotiators working on a possible settlement with JPMorgan Chase & Co. (JPM:US) that the company’s initial proposal fell far short of an acceptable payment amount, according to a person with knowledge of the case.
At the early stages of the negotiations this week, the company was proposing a settlement of between $3 billion and $4 billion, a separate person with knowledge of the negotiations said. Those numbers were rejected by the government, said the person.
Subsequent proposals have reached higher dollar amounts, according to the person, who said that the numbers, as well as how the settlement money may be disbursed, are still subject to change. Both people requested anonymity to describe private negotiations.
JPMorgan is seeking to negotiate an accord resolving mortgage-bond investigations being conducted by federal and state authorities, according to one of the people.
Adora Andy Jenkins, a Justice Department spokeswoman, declined to comment.
To contact the reporter on this story: Phil Mattingly in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Steven Komarow at email@example.com