Legal News

JP Morgan Settles Mortgage Securities Case for $388 Million
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

As a result of allegations made against it for wrongs committed during the 2008 financial crisis, JPMorgan must pay $388 million in a court settlement.

Summary: As a result of allegations made against it for wrongs committed during the 2008 financial crisis, JPMorgan must pay $388 million in a court settlement.

According to Business Insider, JP Morgan Chase & Co has agreed to pay a $388 million settlement in a lawsuit that alleged the bank misled investors about the safety of $10 billion worth of mortgage-backed securities that were sold before the financial crash.

  
What
Where


In 2013, the bank lost $380 million due to legal costs.

The lawsuit was brought by Forth Worth Employees’ Retirement Fund and other investors in offerings that were made before the financial crisis of 2008. They alleged that JPMorgan misled them about the appraisals, credit quality, and underwriting of the home loans that backed the certificates. The suit further alleged that after Lehman Brothers Holdings Inc. closed its doors, the certificates were worth a maximum of 62 cents on the dollar.

The bank agreed to a $13 billion settlement in 2013 in a case with the Justice Department. According to the Franchise Herald, the settlement was the largest in history. In those claims, it was alleged that the bank misled investors in mortgage-backed securities about the risks and soundness of the investments that triggered the2008 financial crisis.

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 bank also had to pay $1.7 billion to victims of the Madoff Ponzi scheme.

Throughout the case, JPMorgan argued that the poor performance of the certificates was not because of the quality of the loans, but because of the collapse of the economy as a whole.



Do you think the economy as a whole or the quality of the loans caused the real problem?

View Results

Loading ... Loading ...

JPMorgan added $1.5 billion to its litigation reserve in 2013.

The settlement, which was disclosed in a court filing Friday, now must be approved by a judge. According to Nasdaq, the litigation has been ongoing for six years.

Source: Business Insider

Photo credit: Bloomberg



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business

USA-VA-McLean

McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Commercial Litigation Attorney with 4+ years of experience

USA-IL-Chicago

Chicago office of our client seeks commercial litigation attorney with 4+ years of experience. The c...

Apply Now

RELEVANT JOBS

Managing Director, Litigation Finance Investments

USA-FL-Tampa

Title                ...

Apply now

Contract Associate

USA-CA-Sausalito

Seeking lawyer with at least 2 yrs experience in complex real estate transactional matters, with wil...

Apply now

Paralegal

USA-CO-Greeley

Growing full-service law firm based in Fort Collins and Greeley is seeking a full time Paralegal. Th...

Apply now

Associate

USA-NY-Syracuse

Our Syracuse, NY office seeks an Associate with 3-5 years experience defending general liabilit...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top