JPMorgan Will Pay $4.5 Billion To Investors Of Toxic Securities
JPMorgan Chase & Co. has agreed to pay $4.5 billion to settle claims from investors who lost money on mortgage-backed securities that went sour as the U.S. housing market imploded.
The settlement is with 21 institutional investors and is separate from the $13-billion-dollar agreement reached last month with the Department of Justice to settle civil charges related to wrongdoing by some of JPMorgan's units.
In Friday's deal, Reuters says:
"The bank will make a binding offer to the trustees of 330 residential mortgage-backed securities trusts issued by the bank and Bear Stearns, which it took over during the financial crisis, [a person familiar with the matter] said. The settlement does not include trusts issued by Washington Mutual, which JPMorgan also acquired, the person said."