|
|
|
|
|
|
| |
| |
By Category |
 |
|
|
| |
|
| |
| |
India On Media |
|
|
|
| |
|
| |
|
|
| Politics
News |
|
| JPMorgan Chase to pay $4.5 billion |
| JPMorgan Chase to pay $4.5 billion in mortgage security deal
|
| UNITED STATES OF AMERICA
, 16-November-2013
2:34:37 AM |
| JPMorgan Chase & Co said on Friday it has agreed to pay $4.5 billion to settle claims by investors who lost money on mortgage-backed securities before the collapse of the US housing market.
The bank reached the agreement with 21 institutional investors in 330 residential mortgage-backed securities trusts issued by JPMorgan and Bear Stearns, which it took over during the financial crisis, according to the bank and lawyers for the investors.
The deal still has to be accepted by seven trustees overseeing the securities holdings, the parties said.
The settlement does not include trusts issued by Washington Mutual, which JPMorgan also acquired.
The deal is separate from the preliminary $13 billion settlement JPMorgan has reached with the US government that would resolve a raft of actions over mortgage-backed securities.
"This settlement is another important step in J.P. Morgan's efforts to resolve legacy related RMBS matters," the bank said in a statement. The bank said it believes reserves it has built will cover the expense of "this and any remaining" mortgage securities litigation.
The 21 investors include BlackRock Inc, Metlife Inc, Allianz SE's Pacific Investment Management Company, the TCW Group and Bayerische Landesbank.
Under the agreement, trustees have until January 15 to accept the offer, which may be extended for another 60 days, according to JPMorgan and Gibbs & Bruns, the Houston law firm that represented the institutional investors.
Kathy Patrick of Gibbs & Bruns called the deal "an important milestone" in a three-year effort by the group of 21 bondholders.
|
|
|
|
|
|
|
|
ADVERTISEMENTS
Free offer!!! Become an administrator for your zip home page, "Post" local news (local to your postcode)& pictures, "Post" advertisement banners from local companies. Make Extra money.
|
 |
 |
|
|
| |
|
