JP Morgan agrees to record $13bn settlement with US regulators
London – U.S. investment bank JP Morgan has agreed to a record 13 billion dollars settlement with American regulators for misleading investors during the housing crisis.
The bank has acknowledged making serious misrepresentations to the public, but denied of violating U.S. laws, the BBC reports.
According to the report, about 4 billion dollars of the settlement amount will go to homeowners affected by JP Morgan’s practices.
The bank had earlier agreed to pay 4.5 billion dollars to investors for misrepresenting the asset quality of 330 residential mortgage-backed securities on 15 November.
On 25 October, the bank paid 5.1 billion dollars to resolve the U.S. Federal Housing Finance Agency (FHFA) claims that it misled mortgage giants Fannie Mae (FNMA) and Freddie Mac about risky mortgage securities before the housing market collapsed.
Another 7 billion dollars will be paid to settle federal and state civil claims relating to misleading mortgage securities sold by the bank, the report added.
Although the settlement concludes the US government’s civil investigation into the bank, a criminal investigation by the Department of Justice is still on, the report added.
Meanwhile, JP Morgan said it has set aside a total of 23 billion dollars to help it work through its many investigations by regulators in the US and abroad.