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Receiving Wide Coverage ...Bigger Battles Ahead: The Times and the FT warn that JPMorgan Chase, which agreed last week to pay $1 billion to settle a range of government inquiries and investigations, may still have bigger battles ahead of it, including a potential lawsuit in California, where federal prosecutors are looking into details of mortgage securities sales conducted in the run-up to the financial crisis. The case is expected to come as soon as today, according to the NYT. Efforts to reach a settlement have failed, the FT reports, citing a source familiar with the matter. New York Times, Financial Times

Receiving Wide Coverage ...JPMorgan's Settlement Tab Keeps Rising: As more leaks drip out from the JPMorgan Chase settlement talks rumor mill, JPM's price tag keeps rising. JPM had been thought to be readying to pay $1 billion, but the Wall Street Journal reports JPM has offered "about $3 billion" though DOJ officials deem that figure as "billions of dollars too low" and that the final amount "could be larger." The New York Times says JPM will pay between $3 billion and $7 billion; the Washington Post says JPM could pay "in excess of $3 billion"; and the Financial Times hedges, saying in its lead paragraph JPM will pay "over $4 billion," but later in the story reporting that authorities are demanding at least $10 billion just for JPM's mortgage sins. The reports don't clarify which of the litany of JPM probes would be put to bed and whether some civil or criminal cases may remain pending after the settlement. The reports identify multiple federal and state agencies as being involved, including New York State Attorney General Eric Schneiderman and the Federal Housing Finance Agency. The talks may settle the probes into energy markets manipulation and the sale of faulty mortgage-backed securities. In a blatant example of stating the obvious, the Post reports that JPM is "eager to put the investigations to rest," citing an unnamed source. California investigators had planned to announce on Tuesday new civil charges against JPM, but the DOJ told Golden State officials to hold tight, the FT and Post reported. Wall Street Journal, New York Times, Financial Times, Washington Post

Receiving Wide Coverage ...$11 Billion: That's how much JPMorgan Chase may have to pay to settle the feds' mortgage-backed securities probe, anonymice tell the papers. Attorney General Eric Holder rejected the bank's offer to pay $3 billion, according to some accounts. JPMorgan "is resisting any sweeping admission of guilt, which could jeopardize its defense against private litigation on similar issues," says the FT. Wall Street Journal, Financial Times, Washington Post

Receiving Wide Coverage ...Hard Ball: Don't be fooled into thinking that U.S. Attorney General Eric Holder will end up strong-arming JPMorgan Chase's CEO Jamie Dimon. While Dimon has largely agreed to provide $4 billion in "soft dollar" relief for borrowers, the DOJ wants more than the proposed $7 billion in penalties. But wait. Dimon also wants California prosecutors to drop a criminal investigation into the bank's mortgage practices, a request that Justice has not yet agreed to, says the NYT's Dealbook. The WSJ says the biggest sticking point is whether JPMorgan will admit wrongdoing, which Dimon has resisted. Only the Washington Post mentions that the deal still represents a sliver of the damage wrought by the bank for selling mortgage securities "that it allegedly knew were worthless."

Receiving Wide Coverage ...Shutdown Showdown: News outlets are heavily focused on a looming government shutdown as political tensions resulted in a Congressional stalemate just ahead of tonight's deadline to avert closure of non-essential government offices. The House did pass legislation over the weekend that would keep the government open through mid-December, but it includes provisions that would delay implementation of the Affordable Care Act for one year. Democrats have already indicated they will strip out these measures when the Senate reconvenes today. This will leave GOP leaders with "a stark choice," the Washington Post notes, "approve the simple funding bill the Senate has already passed or permit federal agencies to close." (The Wall Street Journal has put together a roundup of what services could be suspended on Tuesday if no agreement is reached.) A shutdown would set the stage for a battle over the debt ceiling, which must be raised by mid-October or else the U.S. risks defaulting on its debt. Economists "remain fearful of the fallout" from a prolonged government shutdown and potential default. "If the disagreements persist, the reaction in the markets is likely to become much more pronounced as Oct. 17 draws closer," Dealbook reports. More big picture coverage can be found here: Wall Street Journal, New York Times, Financial Times

Receiving Wide Coverage ...Shutdown: The government shut down after House Republicans and Senate Democrats failed to reach a funding deal before the midnight deadline. Big picture coverage is here: Wall Street Journal, New York Times, Financial Times, Washington Post

Receiving Wide Coverage ...New York State Regulatory Update: New York attorney general Eric Schneiderman is pushing forward with plans to sue Wells Fargo for allegedly violating the national mortgage settlement, reports the Times' Jessica Silver-Greenberg. American Banker readers will recall Schneiderman warned Wells and Bank of America of a potential lawsuit over alleged servicing settlement violations back in May. "While Wells Fargo is bracing for a lawsuit, Bank of America is poised to announce a series of additional protections that it has adopted after discussions with Mr. Schneiderman's office," Silver-Greenberg writes. The lawsuit against Wells is expected to be filed as early as today. Meanwhile, New York regulator Benjamin Lawsky scored a big win in his crackdown on the payday lending industry yesterday when a federal judge ruled he did have authority to regulate online lenders with Native American ties. "The ruling could encourage other states with interest rate caps to take legal action to ban tribal lenders that charge triple-digit rates in their jurisdictions," the Washington Post notes.

Receiving Wide Coverage ...Black Market Bust and Bitcoin: Federal agents yesterday arrested Ross William Ulbricht, the alleged ringleader of "Silk Road," an online drug market that accepted Bitcoin, confiscating about $3.6 million of the digital currency. The bust could have serious implications for Bitcoin, which has grown in popularity over the last few years, at least in part, to the expectation of anonymity. "The federal investigation that led to Ulbricht's arrest shows that even purchases made with anonymous profiles on an anonymous site are still trackable," one source tells the Washington Post. Bitcoin prices plummeted yesterday, following news of the raid. But some pundits think the bust could wind up being good for the crypto-currency. "Proponents see Bitcoin primarily as a way to lower the transaction costs associated with legitimate online commerce," writes Bloomberg's Joshua Brustein. "If the market quickly recovers, it bolsters their argument by showing that demand won't drop off once the best way to buy cocaine with Bitcoin disappears." New York magazine's Kevin Roose echoes: "Silk Road's closure … means that the people fighting to legitimize Bitcoin can credibly claim that the old days of the crypto-currency as a tool for vice are over. And after Bitcoin prices stabilize, these people can make a push for a new beginning."

Receiving Wide Coverage ...Citi Fined: Citigroup has agreed to pay a Massachusetts regulator $30 million for allowing an analyst to share unpublished research about Apple with a handful of hedge funds, including SAC Capital. The Journal calls the case "a vivid example of a problem many critics say isn't going away: sloppy controls over the market-sensitive information flowing between analysts and investors." Dealbook suggests the incident says something about SAC Capital, which was indicted on insider trading charges back in July. "The latest details … illuminate the hedge fund's relentless pursuit of an edge in stock trading," the article notes. Charges have yet to be filed against any of the hedge funds that received the heads up, but enforcement actions are apparently under consideration. Anonymice tell the Journal that the Financial Industry Regulatory Authority is also investigating Citi over the matter. The bank, which did not admit or deny breaking the law as part of the consent order, tells the FT it is "pleased to have this matter resolved" and that it takes "regulatory compliance requirements very seriously."

Receiving Wide Coverage ...All Shutdown All the Time: The ongoing government shutdown dominated news coverage this weekend. The Wall Street Journal highlighted how government officials and economists are facing forecasting quandaries as the budget impasse delays the release of key data, including the Labor Department's monthly jobs report. A separate article notes that Fed officials are monitoring the shutdown to see if the prolonged stalemate creates any drag on the private sector. Speaking of the Fed, the Financial Times assessed how a prolonged shutdown, and a lockdown of critical data, could influence the Fed's decision to taper its quantitative easing. The New York Times focused on the months leading up to the shutdown and how issues in Washington have provided a lift to the derivatives market, observing that insurance for credit-default swaps have started to rise.