Another day, another billion dollar settlement for a bank involved in fraudulent mortgage practices that led up to the 2008 housing crash. The Justice Department announced Tuesday that it reached a $13 billion settlement with JPMorgan Chase & Co. around its packing, marketing and sale of rotten mortgage-backed securities, which then collapsed in value and, in some way, took the economy with it.
The settlement is the largest ever reached between the government and another entity, the government’s press release said . As part of the deal, homeowners affected by the bank’s actions will get $4 billion in the form of reduced interest rates on mortgages, new loans and investment to reduce blight in hard-hit areas. Illinois will also receive a chunk of the settlement for losses sustained by its pension system when the housing bubble burst.
But within the settlement is a key term that concerned communities have long taken issue with when it comes to major settlements with banks—civil.