JPMorgan Chase & Co.’s proposed terms to settle state and federal probes of the bank’s mortgage-bond sales were rejected by the Department of Justice this week, Bloomberg News reported yesterday. The Justice Department told JPMorgan that it won’t agree to language the firm submitted on Oct. 27. The government would bar JPMorgan from trying to recover part of the costs from the Federal Deposit Insurance Corp. and opposed the company’s bid to avoid criminal liability in cases that don’t involve residential mortgage-backed securities. JPMorgan, led by Chief Executive Officer Jamie Dimon, is trying to complete a $13 billion settlement outlined in talks earlier this month. Part of the deal was finished with the Federal Housing Finance Agency last week, as the New York-based bank agreed to pay $4 billion to settle claims it sold faulty mortgage bonds to Fannie Mae and Freddie Mac.
