That's fine with investors, since it adds to the likelihood of the FOMC not tapering QE3 until next year.
Turning to U.S. bank stocks, the
KBW Bank Index
rose slightly to close at 65.04, with winners and losers roughly split.
Wall Street Journal
on Tuesday reported that the expected agreement on multiple settlements of criminal and civil investigations of
mortgage lending and sales activities was "at risk of collapse." The Department of Justice is leading the settlement negotiations. As part of the broad bundle of settlements, JPMorgan on Friday announced
an agreement with the Federal Housing Finance Agency
(FHFA) to pay
$5.1 billion to settle loss claims on mortgage-backed securities from JPM, as well as from Bear Stearns and Washington Mutual, which JPMorgan acquired during 2008 through government-sponsored deals.
JPMorgan admitted no wrongdoing in the FHFA settlement. The broad settlement with the Justice Department springs from a dispute between the bank and the Federal Deposit Insurance Corp. Following the failure of Washington Mutual in September 2008, the FDIC sold the nation's largest S&L to JPMorgan. The DoJ and JPMorgan continue to dispute how liable JPMorgan should be for actions taken by Washington Mutual leading up to its failure.
JPMorgan's shares rose slightly to close at $52.59.
-- Written by Philip van Doorn in Jupiter, Fla.