News / Economy

JPMorgan Close to $6 Billion Settlement with Investors

The JPMorgan Chase & Co. logo is displayed at their headquarters in New York, Oct. 21, 2013.
The JPMorgan Chase & Co. logo is displayed at their headquarters in New York, Oct. 21, 2013.
Reuters
JPMorgan Chase & Co is nearing an agreement worth close to $6 billion with a group of institutional investors to settle claims over shoddy mortgage-backed securities issued in the run-up to the financial crisis, a source familiar with the talks said.
 
Representatives of JPMorgan and the investors met on Friday to discuss the settlement, though the two sides have not yet agreed to formal terms, the source said.
 
The potential deal is separate from the preliminary $13 billion settlement JPMorgan has reached with the U.S. government that would resolve a raft of civil actions brought by several enforcement agencies.
 
The group of more than a dozen bondholders includes BlackRock Inc, Allianz SE's Pacific Investment Management Co and Neuberger Berman Inc, the source said.
 
Kathy Patrick, a lawyer for the investors group, did not immediately respond to requests for comment. JPMorgan also was not immediately available outside regular U.S. business hours.
 
Patrick and her Houston-based firm, Gibbs & Bruns, also represent a group of investors that struck an $8.5 billion settlement with Bank of America Corp in 2011 over similar allegations stemming from the bank's Countrywide unit. A New York state judge is weighing whether to approve that deal after American International Group Inc and others objected, arguing that it was too small.
 
In 2011, the law firm said its investor clients had instructed trustees overseeing $95 billion of securities issued by JPMorgan's affiliates during the housing boom to investigate whether the bonds were backed by ineligible mortgages.
 
The firm said its clients represented holders of more than 25 percent of the voting rights in the securities, which included bonds from Bear Stearns and Washington Mutual, two firms that JPMorgan took over during the financial crisis.
 
JPMorgan reported a third-quarter loss earlier this month, the first under CEO Jamie Dimon, after recording a $7.2 billion after-tax expense to add money to its legal reserves in anticipation of settling the U.S. government's mortgage claims.
 
The company had $23 billion in its legal reserves as of the end of the quarter.
 
Two sources familiar with the matter told Reuters that JPMorgan's tentative $13 billion settlement with the U.S. government could end up costing the bank closer to $9 billion after taxes, because the majority of the deal was expected to be tax deductible.
 
The settlement talks were reported earlier by The Financial Times and The Wall Street Journal.

You May Like

Uganda Court Annuls Anti-Gay Law

Court says law was passed in parliament without enough members present for a full quorum More

Video Thailand Makes Efforts to Improve Conditions for Migrant Laborers

In Thailand, its not uncommon for parents to bring their children to work; one company, in-collaboration with other organizations, address safety concerns More

In Indonesia, Jihad Video Raises Concern

Video calls on Indonesians to join Islamic State of Iraq and the Levant, ISIL More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
In Thailand, Some Efforts to Improve Conditions For Migrant Laborersi
X
Steve Herman
August 01, 2014 6:22 PM
Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video In Thailand, Some Efforts to Improve Conditions For Migrant Laborers

Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video Public Raises its Voice on Power Plant Pollution

In the United States, proposed rules to cut pollution from the nation’s 600 coal-fired power plants are generating a heated debate. The U.S. Environmental Protection Agency, charged with writing and implementing the plan, has already received 300,000 written comments. As VOA’s Rosanne Skirble reports, another 1,600 people are lining up this week at EPA headquarters and at satellite offices around the country to give their testimony in person.
Video

Video Information War Rages Alongside Real One in Ukraine

The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict in Gaza, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities. Probably the most important destination is the local bakery. VOA’s Scott Bobb reports from Gaza City.
Video

Video China Investigates Powerful Former Security Chief

The public in China is welcoming the Communist Party's decision to investigate one of the country's once most powerful politicians, former domestic security chief Zhou Yongkang. Analysts say the move by President Xi Jinping is not only an effort to win more support for the party, but an essential step to furthering much needed economic reforms and removing those who would stand in the way of change. VOA's Bill Ide has more from Beijing.
Video

Video US-Funded Program Offers Honduran Children Alternative to Illegal Immigration

President Obama and Central American leaders recently agreed to come up with a plan to address poverty and crime in the region that is fueling the surge of young migrants trying to illegally enter the United States. VOA’s Brian Padden looks at one such program in Honduras - funded in part by the United States - which gives street kids not only food and safety but a chance for a better life without, crossing the border.
Video

Video 'Fab Lab' Igniting Revolution in Kenya

The University of Nairobi’s Science and Technology Park is banking on 3-D prototyping to spark a manufacturing revolution in the country. Lenny Ruvaga has more for from Nairobi's so-called “FabLab” for VOA.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.