JP Morgan settles with the Justice Department

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The United States Justice Department spent weeks negotiating with JP Morgan to reach a settlement on the company's faulty mortgage investment allegations. 

But today, both parties reached an agreement--$13 billion.That's how much the company will pay, the largest penalty levied against a U.S. company.

The financial giant will also have to pay a $2 billion fine to the Justice Department. 

The settlement will benefit California.

California Attorney General Kamla Harris says nearly $300 million will go to the state to resolve allegation that mortgage-backed securities were sold to California's public employee and teacher pension funds. 

JP Morgan will also assume that it made false representations to investors and had prior knowledge about the faulty loans.