Why JPMorgan Chase & Co. (JPM) Is Headed Down the Toilet Today

The bank had already agreed to $722 million settlement back in 2009 with the SEC related to its Jefferson County financings, but now the bank has agreed to forgive $842 million in debt owed to it by the county. This move may be detrimental to the bank, but with the majority of its debt forgiven, the county will be closer than ever to exiting bankruptcy.

Just another headline
The news from Jefferson County may not be welcomed by bank investors, but it’s just one more example of how old deals can come back and bite a business. And since the total cost of this deal is only a quarter of the London Whale’s damage, the banks shouldn’t have any problem moving forward, if history proves correct. As a Foolish long-term investor, be happy that this will resolve the issue and the bank can go back on its way.

The article Why JPMorgan Is Headed Down the Toilet Today originally appeared on Fool.com.

Fool contributor Jessica Alling has no position in any stocks mentioned — you can contact her here. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase.

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