JPMorgan Chase & Co will pay $4.5 billion to settle claims by 21 institutional investors over mortgage-backed securities issued from 2005 to 2008, the largest US bank announced Friday.
The agreement must still be approved by trustees overseeing the 330 mortgage bond trusts, which incurred costs from bad loans bundled into the bonds.
The settlement covers bonds sold by both JPMorgan and Bear Stearns Cos, which the New York-based bank bought in 2008.
In a statement, JPMorgan called the settlement “another important step” in the bank’s efforts to resolve disputes over residential mortgage-backed securities.
JPMorgan agreed in October to pay $5.1 billion to settle claims of misleading federally backed mortgage companies about the risk associated with other bonds it sold.
More Like This
Published on November 16, 2013
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.