Legal News

JPMorgan and Credit Suisse Settle U.S. Civil Charges for $417 Million
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Regulators said on Friday that JPMorgan Chase & Co and Credit Suisse Group AG will be paying a combined $416.9 million to settle charges against them for misleading investors over the sale of high-risk mortgage bonds. Credit Suisse will pay $120 million and JPMorgan $296.9 million to settle separate cases over essentially same charges. The SEC said the harmed investors would be the beneficiaries.

Both the banks in their separate settlements said that they were happy to settle without admitting any wrongdoing.

In a statement, Robert Khuzami, the SEC enforcement chief said, “Misrepresentations in connection with the creation and sale of mortgage securities contributed greatly to the tremendous losses suffered by investors once the U.S. housing market collapsed.” The cases were brought over pre-recession sales of RMBs or risky mortgage-backed securities.

  
What
Where


The SEC enforcement chief also pointed to the role of such financial wrongdoing in bringing about the recession. Khuzami said, “In many ways, mortgage products such as RMBS were ground zero in the financial crisis.”

While the settlements do not lay charges at the feet of any individual, in a conference call with reporters, Khuzami said, “We by no means are shying away from charging individuals where we can identify them as being responsible.”

In the instant cases the SEC had accused JPMorgan of misleading and concealing material information related to the quality of home loans it backed by a $1.8 billion RMBS. JPMorgan chase had represented to investors that only four loans were delinquent by 30 to 59 days, while, in fact, at least 620 loans or 7 percent of the total RMBS was delinquent. Investors lost about $37 million as a result of the misrepresentation.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The SEC said that the modus operandi of Credit Suisse had been similar to that of JPMorgan and the Swiss bank to had misled investors by making false claims.

The cases are SEC v. JPMorgan Securities LLC et al, U.S. District Court, District of Columbia, No. 12-01862; and In re: Credit Suisse Securities (USA) LLC et al, U.S. Securities and Exchange Commission, No. 3-15098.





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Business Litigation Attorney

USA-CA-Santa Monica

Santa Monica office of our client seeks business litigation attorney with 1-3 years of experience. T...

Apply Now

Intellectual Property Litigation / Enforcement Associate Attorney

USA-CA-San Francisco

San Francisco office of our client seeks intellectual property litigation / enforcement associate at...

Apply Now

Corporate Attorney

USA-CA-Menlo Park

Menlo Park office of sophisticated boutique firm is seeking a corporate attorney with experience in ...

Apply Now

School District Associate Attorney

USA-NY-Syracuse

Syracuse office of our client seeks school district associate attorney with 2+ years of experience. ...

Apply Now

RELEVANT JOBS

Associate - Mid-Level - GL Group

USA-NY-Valhalla

Defense firm seeking mid-level associate for Westchester office to fill General Liability position. ...

Apply now

Mortgage Compliance Analyst

USA-MN-Minnetonka

Job Description: Rubicon Mortgage Advisors LLC, a locally-owned, boutique mortgage lender is seeki...

Apply now

Litigation Legal Assistant

USA-CA-Los Angeles

Qualifications: Candidate should have 2+ years of previous experience supporting multiple atto...

Apply now

Litigation Legal Assistant (10+ Years Experience)

USA-CA-Los Angeles

Qualifications: Candidate should have 10+ years of previous experience supporting multiple att...

Apply now

SEARCH IN ARCHIVE

To Top