Bloomberg-

JPMorgan Chase & Co. (JPM)’s proposed terms for settling state and federal probes of mortgage-bond sales were rejected by the Department of Justice this week, according to two people familiar with the negotiations.

The Justice Department told the bank it won’t agree to language the firm submitted Oct. 27, said the people, who asked not to be named because the talks are private. The sides split over JPMorgan’s plan to seek reimbursement from the Federal Deposit Insurance Corp. for part of the accord and the bank’s bid for exemption from criminal liability in probes unrelated to residential mortgage-backed securities, one person said.

[BLOOMBERG]

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