On Friday JPMorgan agreed a $5.1bn payout to the US Federal Housing Finance Agency for misleading Fannie Mae and Freddie Mac during the housing boom.
Over the last week, JPMorgan has been threatened with further fines from the US Department of Justice reaching into the tens of billions of dollars to settle ongoing investigations into its mortgage-backed securities responsible for severely impacting the banking system.
These fines follow a string of legal and regulatory proceedings for the bank, as the London Whale scandal prompted a reported $920 million payout to the regulators last month, and news that it has put aside $9.2 billion for mounting legal costs.
Here are some interesting articles we’ve come across recently on why things went so wrong:
Also, an interesting one on why the Value at Risk model didn’t work for JPMorgan: