JP Morgan (NYSE: JPM) Nears $1.4 Billion Tax Deal on WaMu Mortgage Exposure

According to a Wall Street Journal report Wednesday, JP Morgan Chase (NYSE:JPM) is nearing a deal with the Federal Deposit Insurance Corp. (FDIC) that could end up providing the firm with $1.4 billion in tax refunds.

The report, which cited unnamed sources, also indicated that as part of a larger settle with Washington Mutual's bondholder's, JP Morgan could claim $1.4 billion of funds in the FDIC receivership to shield itself from exposure to mortgages that WaMu serviced.

WaMu was seized by the FDIC in March in 2008 and later sold to JP Morgan for $1.9 billion, putting it among the largest US bank failures in history.