JPMorgan CEO states foreclosure deal threatened

JPMorgan Chase & Co Chief Executive Jamie Dimon stated President Barack Obama’s decision to expand investigations into home lending and sales of mortgage securities could stop settlement speaks with the says over foreclosure practices.

“It has a pretty good chance of derailing it,” Dimon stated in a televised interview with CNBC from Davos, Switzerland on Thursday.

Obama, in his State of the Union address Tuesday, stated he has asked his attorney general to create a special unit of prosecutors to expand investigations into home lending and packaging of mortgage-backed securities. It is not clear how the new unit will be different from earlier investigations.

JPMorgan is the largest U.S. bank and one of the bigger servicers of mortgage loans. JPMorgan, Bank of America, Wells Fargo & Co, Citigroup and Ally Financial Inc have been in speaks with say attorneys general for months about settling allegations of foreclosure abuses.

The banks and says have been discussing a plan that would have the banks pay $25 billion to home owners through reductions in principal on mortgage loans.

“I think it would be better for America if that settlement took place,” Dimon said. “If this thing derails that, so be it.” (Reporting by David Henry; editing by John Wallace)

Copyright 2012 Thomson Reuters. Click for restrictions.

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Submited at Thursday, January 26th, 2012 at 3:00 pm on News by john
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