JP Morgan will pay a 3 billion Euros fine for its subprime mortgages

The New York bank JP Morgan Chase & Co has agreed to pay 4 billion (about 3 billion Euros) to US authorities for having misinformed the government sponsored enterprises Fannie Mae and Freddie Mac about the quality of the assets sold before the start of the housing bubble investigation.

According to Wall Street Journal, which cites sources close to the talks between JP Morgan and the Federal Housing Finance Agency (FHFA), the preliminary agreement amounts four billion dollars. If agreed upon, the amount would be significantly lower compared to the six billion dollars (4.5 billion Euros) previously estimated.

The New York bank has been negotiating with the US Department of Justice for months, trying to close other pending investigations regarding financial fraud w