Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Market
JP Morgan, Investors Agree On $4.5 Billion MBS Settlement
NEW YORK (11/19/13)--JP Morgan reached a preliminary agreement on a $4.5 billion settlement with institutional investors who accuse the bank of misrepresenting 330 different mortgage-backed security trusts.

Representatives of the 21 investors said that they will back the deal, and will ask trustees--who can still ask a judge to approve of the settlement--to accept it. The terms of the settlement will be valid until Jan. 15, 2014, JP Morgan said in a Friday release.

The claims revolve around mortgage-backed securities sold by JP Morgan and Bear Stearns between 2005 and 2008. JP Morgan acquired Bear Stears in March 2008, as the firm flirted with bankruptcy.

Claims surrounding mortgage-backed security trusts sold by Washington Mutual--another institution acquired by JP Morgan amid the global financial meltdown, in September 2008--remain unsettled.

JP Morgan's recent spate of legal woes, alleged unethical practices and subsequent public image problems made headlines last week, when the bank launched a social media campaign that was hijacked and roundly mocked by social media users (News Now Nov. 15).

JP Morgan late Wednesday cancelled a Twitter live Q&A forum it had scheduled for Thursday under its #AskJPM Twitter hashtag when Twitter users began inundating the hashtag with the type of questions many banks--especially one that has been the target of several Justice Department investigations--wouldn't want to answer.


RSS





print
News Now LiveWire
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
5 hours ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
5 hours ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
8 hours ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
9 hours ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
10 hours ago