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
@AdamMertzCUNA @CUNACraig @AnnHPeterson @CUEscan @cumagazine
6 hours ago
.@TheNCUA :Low-income CUs can expand services to members, train staff,collaborate for efficiencies w/more than $1M in grants awarded 2day
16 hours ago
.@CUNA joins 11 other financial service orgs urging @SenateFloor to take up #CISA to strengthen cybersecurity information sharing
16 hours ago
.@RedwoodCU and its staff donated a combined $5,100 toward AIDS Walk San Francisco. The CU is a longtime sponsor of the event.
17 hours ago
See the latest from @CUNA's CompBlog on Customer Due Diligence. http://t.co/rzOzDUpNMT
17 hours ago