JP Morgan Reportedly in Talks to Settle Government Probes for $11B (JPM)

On Wednesday afternoon, the Associated Press reported that JP Morgan Chase (JPM) was in talks to settle both state and federal government probes into its mortgage backed securities from 2007.

The article gave its source as a government official familiar with the matter, and stated that the reported settlement would include $4 billion worth of relief to consumers and $7 billion in cash. The government investigation into JP Morgan stems from the company’s handling of mortgage backed securities that led up to the Great Recession in 2008.

JPM shares were up up $1.38, or 2.67%, at the end of market trading on Wednesday. YTD, the company’s stock is up over 12.5%.