The Federal Housing Finance Agency is seeking at least $6 billion from JPMorgan Chase (JPM) to settle civil claims the bank sold bad mortgage bonds to government-backed finance companies Fannie Mae and Freddie Mac, according to a person briefed on the matter.
The agency, which sued JPMorgan and 17 other banks over faulty mortgage bonds two years ago, is trying to recoup some of the losses taxpayers were forced to cover when the government took over the failing mortgage finance companies in 2008. Fannie Mae and Freddie Mac, which are regulated by FHFA, have taken $187.5 billion in federal aid since then.
Peter Garuccio, a spokesman for FHFA, and Justin Perras, a spokesman for the bank, declined to comment.
The Financial Times reported the $6 billion minimum settlement request earlier today.
