Summary
JPMorgan Chase & Co. has announced a significant development concerning its residential mortgage-backed securities (RMBS) activities. On November 19, 2013, the company reached a settlement in principle valued at $13 billion with the President's RMBS Working Group of the Financial Fraud Enforcement Task Force. This agreement aims to resolve actual and potential civil claims from the Department of Justice and other regulators stemming from RMBS activities of JPMorgan Chase, Bear Stearns, and Washington Mutual. The company has stated it is fully reserved for this settlement, providing a degree of clarity for investors. This resolution, combined with a previously announced settlement of representation and warranty claims, addresses a substantial portion of the RMBS-related civil litigation claims against the firm, including substantially all claims from federally insured and controlled entities. While this resolves significant civil matters, JPMorgan Chase continues its cooperation with an ongoing criminal investigation by the Department of Justice.
Key Highlights
- 1JPMorgan Chase reached a $13 billion settlement in principle to resolve civil claims related to RMBS activities.
- 2The settlement covers claims from the Department of Justice and other regulators.
- 3Claims resolved involve activities by JPMorgan Chase, Bear Stearns, and Washington Mutual.
- 4The company has confirmed it is fully reserved for the $13 billion settlement.
- 5This agreement resolves a significant portion of RMBS-related civil litigation, including claims from federally insured and controlled entities.
- 6JPMorgan Chase continues to cooperate with the Department of Justice's ongoing criminal investigation.