Summary
This 8-K filing from JPMorgan Chase & Co. (JPM) on August 19, 2016, announces the execution of definitive agreements to resolve significant outstanding disputes with Deutsche Bank National Trust Company (DBNTC) and the Federal Deposit Insurance Corporation (FDIC) concerning liabilities stemming from the 2008 acquisition of Washington Mutual Bank (WMB). The resolution involves JPMorgan Chase Bank, N.A. receiving a cash payment of $645 million from the WMB receivership estate. This settlement effectively closes multiple legal actions, including litigation brought by DBNTC against the FDIC and JPMorgan Chase, as well as JPMorgan Chase's own indemnification claims related to the WMB transaction. The agreement also sees JPMorgan Chase releasing its indemnity claims against the WMB receivership estate, which were valued at over $1 billion.
Key Highlights
- 1JPMorgan Chase & Co. has finalized agreements to resolve disputes with DBNTC and the FDIC related to the 2008 Washington Mutual Bank (WMB) acquisition.
- 2The company will receive a cash payment of $645 million from the WMB receivership estate.
- 3The settlement resolves pending litigation brought by DBNTC against the FDIC and JPMorgan Chase concerning mortgage securitization representations and warranties.
- 4JPMorgan Chase is releasing its outstanding indemnification claims against the WMB receivership estate, which exceeded $1 billion.
- 5The agreements will lead to the dismissal of four WMB-related legal actions in the U.S. District Court for the District of Columbia.
- 6The pre-tax impact to JPMorgan Chase is the recognized cash payment in the future period it is accounted for.