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JP Morgan agrees record settlement after admitting fault in US housing crisis

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JP Morgan agrees record settlement after admitting fault in US housing crisis

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US bank JP Morgan has admitted misleading investors during the housing crisis and agreed to pay a record $13bn (9.5bn euros) settlement to the government and federal officials.

The bank acknowledge that when the mortgages turned bad, investors lost faith triggering the financial meltdown.

However it said it had not violated US laws.

JP Morgan has set aside funds to cover the settlement, meaning the deal will have no impact on its earnings.

But it still faces at least nine other government probes, covering everything from its hiring practices in China to whether it manipulated the Libor benchmark interest rate.