Left pushes to trim JPMorgan tax breaks on settlement

Liberal advocacy groups are mounting pressure on the Justice Department to bar JPMorgan from deducting from the bank’s taxes any portion of a broad government settlement in the works.

The reportedly $13 billion settlement over the bank’s mortgage activities before the financial crisis, which is still being hammered out, would be the largest such settlement in U.S. history. But reports that JPMorgan is seeking use up to $4 billion of the settlement as a tax write-off has led to protests from liberal groups and lawmakers.

On Monday, two groups delivered over 160,000 petitions to the Justice Department calling for barring any potential tax benefit. The groups, U.S. PIRG and Americans for Tax Fairness, argue it is patently unfair for taxpayers to help subsidize JPMorgan’s fines through the tax code.

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“The American people were already victimized once by Wall Street’s malfeasance. They should not be victimized again by having to pick up more of the tab,” said Frank Clemente, campaign manager for Americans for Tax Fairness. “The Obama administration should be helping homeowners with underwater mortgages, not be giving tax breaks to the banks that put them there.”

 The potential tax perk has also attracted attention on Capitol Hill. Five U.S. senators wrote to Attorney General Eric HolderEric H. HolderEric Holder group to sue Georgia over redistricting Eric Holder to Trump: 'Taking a knee is not without precedent' Juan Williams: Momentum builds against gerrymandering MORE Tuesday, urging him to explicitly prevent any tax writeoffs under the settlement. That letter was signed by Sens. Mazie HironoMazie Keiko HironoTop general says Iran complying with nuclear deal Live coverage: Sanders rolls out single-payer bill Where Dems stand on Sanders's single-payer bill MORE (Hawaii), Bill NelsonClarence (Bill) William NelsonSenate panel approves bill to speed up driverless cars Dems plan to make gun control an issue in Nevada Overnight Cybersecurity: Trump proclaims 'Cybersecurity Awareness Month' | Equifax missed chance to patch security flaw | Lawmakers await ex-CEO's testimony | SEC hack exposed personal data MORE (Fla.), Martin HeinrichMartin Trevor HeinrichThe Hill's 12:30 Report New Mexico Gov: GOP health care bill 'still needs some work' Dems ask FEC to create new rules in response to Russian Facebook ads MORE (N.M.), Sheldon WhitehouseSheldon WhitehouseDem senator: 'How many lives must be lost before we act?' Sen. Manchin won’t vote for Trump’s mine safety nominee Overnight Regulation: SEC chief grilled over hack | Dems urge Labor chief to keep Obama overtime rule | Russia threatens Facebook over data storage law MORE (R.I.) and Elizabeth WarrenElizabeth Ann WarrenOvernight Finance: Lawmakers grill Equifax chief over hack | Wells Fargo CEO defends bank's progress | Trump jokes Puerto Rico threw budget 'out of whack' | Mortgage tax fight tests industry clout Michelle Obama is exactly who the Democrats need to win big in 2020 Wells Fargo chief defends bank's progress in tense Senate hearing MORE (Mass.).

In the House, Reps. Peter WelchPeter WelchLawmakers try again on miners’ pension bill It's time to eliminate the secretive Pharmacy Benefit Manager pricing practices Trump is 'open' to ObamaCare fix, lawmakers say MORE (D-Vt.) and Luis GutierrezLuis GutierrezDem senator slams Trump's Puerto Rico remark: 'What's out of whack' is your response Gutiérrez rips Trump's comments in Puerto Rico: 'I wish he would stop talking about money' Ex-Puerto Rican official: San Juan mayor just wants to run for governor MORE (D-Ill.) introducing legislation barring companies from using the tax code to deduct costs from government settlements, and Welch also sent a letter to the bank’s chief executive, Jamie Dimon, urging him to avoid the writeoff.

While the bulk of the settlement is still being finalized, the Federal Housing Finance Agency announced in October it had struck a $4 billion settlement with the bank, after it charged JPMorgan broke securities laws when it sold securities loaded with risky mortgages to Fannie Mae and Freddie Mac.