JPMorgan's $5.1 Billion Mortgage Settlement Doesn't Impact Its $60 Price Estimate

While the terms of Citigroup's settlement with the FHFA were not disclosed, the fact that the size of Citi's MBS under litigation were about one-tenth that for JPMorgan ($3.5 billion vs. $34 billion) indicates that Citi would likely have paid less than half a billion dollars in penalties to the FHFA in addition to separate mortgage repurchase agreements costing almost $1.4 billion.