According to The Wall Street Journal, in the end, it was J.P. Morgan Chase & Co. that blinked.
A day before J.P. Morgan Chief Executive James Dimon and Attorney General Eric Holder tentatively agreed to a record $13 billion settlement Friday, the Justice Department notified the bank it would file a civil lawsuit in six days and seek a large amount of damages from the largest U.S. lender by assets, according to people close to the talks.
The warning helped spur the bank closer to an agreement, even though the pact didn’t provide the bank what it wanted—protection against a continuing criminal probe of past mortgage-bond sales.
The historic agreement, which is being watched from Wall Street to Washington, isn’t finalized. The parties are still negotiating final terms.