JPMorgan Chase CEO Jamie Dimon left the Justice Department in Washington, D. C. empty handed- no deal to end investigations into the banks alleged sales of bad mortgage securities in the years leading up to the financial crisis.
The meeting with U. S. Attorney General Eric Holder lasted about an hour. Sources say the bank and federal and state authorities are trying to resolve the investigations, with a potential $11 billion dollar settlement. JP Morgan had a profit of $21 billion in 2012.
Holder declined to share any specifics- but made clear his team's interest in going after financial institutions.
SOUNDBITE: ERIC HOLDER, U. S. ATTORNEY GENERAL (ENGLISH) SAYING
"This is something that is a priority for the Justice Department. To hold accountable people who would manipulate, companies who would manipulate our financial markets for their own customers benefit or for the benefit of the companies."
Dimon's meeting with Holder shows how high the stakes are for JPMorgan and how Dimon is attempting to put the bank's legal and regulatory headaches to rest.
Several analysts on Wall Street put out notes Thursday supporting the company- despite its troubles.
S&P Capital IQ analyst Erik Oja is maintaining his strong buy on the stock:
"About 70 % of the mortgage claims stem from Bear Stearns and Washington Mutual. JPM's mortgage repurchase reserve at June 30 was $2.5 billion. The rest would come from legal reserves. We see the potential settlement as manageable, and see added clarity as a positive."
And a vote of confidence from Derek De Vries at UBS:
"JPMorgan remains the best universal bank franchise. More than any other bank, we see JPMorgan as a winner in the new competitive landscape. "
As of now the talks are being described as fluid, and filled with uncertainties over which claims against the bank would be resolve.