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JPMorgan has agreed to a $13 billion settlement over mortgage-backed securities sold ahead of the financial crisis, officials announced Tuesday.

 

The Justice Department called the agreement "the largest settlement with a single entity in American history.
At issue are allegations that JPMorgan and firms it later purchased, Bear Stearns and Washington Mutual, sold risky mortgage securities during the housing bubble while misrepresenting their quality. These securities later failed in huge numbers, playing a key role in the 2008 crisis.
"Without a doubt, the conduct uncovered in this investigation helped sow the seeds of the mortgage meltdown," Attorney General Eric Holder said in a statement.
As part of the agreement, JPMorgan admitted to making "serious misrepresentations" to investors in mortgage-backed securities, the Justice Department said.
Bank executives were at pains to emphasize that they had not admitted to any specific violation of the law during a conference call with analysts Tuesday. Such an admission would provide ammunition for private lawsuits.
JPMorgan CEO Jamie Dimon said in a statement the firm was "pleased to have concluded this extensive agreement."