JPMorgan shares have dropped modestly (though any drop is notable in the new normal) as the WSJ reports that the $13bn deal with the Department of Justuice may be at risk:
- *JPMORGAN FALLS 0.6% AS DOW JONES SAYS DOJ DEAL AT RISK
- *JPMORGAN, JUSTICE DEPT SAID TO DISAGREE ON FDIC REIMBURSEMENT
- *JPMORGAN PROPOSED SETTLEMENT SAID TO FACE U.S. RESISTANCE
It appears the 'breakdown' is over JPMorgan's demands that they offset payments to the DoJ from the FDIC fund (i.e. they wanted to use FDIC to fund this penalty on the basis of som epossible indemnification from the WaMu deal). DoJ lawyers are not amused (for now)...