The U.S. government's housing finance authority is is pursuit of a $6 billion settlement from JPMorgan Chase & Co over bonds backed by subprime mortgages. The lawsuit accuses the bank of misrepresenting how well they checked the safety of these mortgages and charged they did not meet investors' expectations. As borrowers fell behind on their mortgage payments, the value of the bonds fell causing huge losses. Alot of the bonds that are in questions were sold by Washington Mutual and Bear Stearns, two failed financial institutions that JPMorgan bought out during the financial crisis. JPMorgan is fighting to pay a smaller settlement but no word on how that will work out yet.