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Banks open fresh settlement talks

By Kara Scannell in New York

Several global banks facing charges of mis-selling mortgage-backed securities have approached New York’s attorney-general about potential multibillion-dollar settlements in the wake of JPMorgan Chase’s tentative agreement to pay $13bn in fines and consumer relief.

“I have already had expressions of interest from other institutions,” Eric Schneiderman, New York attorney-general and co-chairman of the state-federal working group investigating sales of residential mortgage-backed securities, said in an interview with the Financial Times.

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“It is my hope that [JPMorgan’s deal] is the first of a series of settlements that collectively will be the largest financial settlement in the history of the US,” he added.

Mr Schneiderman declined to identify which financial institutions had reached out to his office but said he views JPMorgan’s tentative deal as “a template for future settlements.” At least nine banks, includingRoyal Bank of Scotland, Credit Suisse and Bank of America, are under investigation for mortgage-securities sales in the lead-up to the financial crisis, as previously reported by the FT.

As part of its deal JPMorgan is set to pay $9bn in cash and...