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More on the JPMorgan settlement

  • JPMorgan (JPM) is paying $4.5B to to 21 institutional investors to settle claims related to mortgage-backed securities issued by the bank and acquired Bear Stearns from 2005-2008. The investors had been seeking $5.75B to settle claims on securities issued by the aforementioned banks and Washington Mutual.
  • WaMu-related claims aren't part of the deal, and JPMorgan is arguing it isn't responsible for any wrongdoings committed by WaMu before regulators seized control of it.
  • BNY and other trustees overseeing the securities still have to agree to the deal, and court approval is also needed.
  • Previous: JPMorgan agrees to $4.5B settlement
Comments (3)
  • ARX Capital
    , contributor
    Comments (5) | Send Message
     
    A few questions/observations. To whom does the $4.5 billion go to? If these were mutual funds (which I'm sure some were) does the money go to the fund manager or to the mutual fund shareholders, assuming they have never been made whole. Also, Institutional shareholders are thought of as sophisticated enough to properly analyze the securities they bought and place an appropriate value on them. Apparently they failed in this regard, even though they may claim there was fraudulent information. Could they have not done better homework?
    16 Nov 2013, 08:59 AM Reply Like
  • kata
    , contributor
    Comments (687) | Send Message
     
    Isnt the govt glad it socked it to JPM after they arm twisted them to bail out the govt during the credit crisis? Now they want the healthcare insurance companies to do the same with ObamaCare. If they do, their shareholders will sue them out of existence.
    16 Nov 2013, 01:19 PM Reply Like
  • MHA
    , contributor
    Comments (10) | Send Message
     
    Beware of the statement.. I'm from the Government and I'm here to help.
    17 Nov 2013, 10:05 PM Reply Like
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