JPMorgan Chase & Co. JPM announced today that it has reached a $13 billion
settlement in principle negotiated by the President's RMBS Working Group of
the Financial Fraud Enforcement Task Force. Today's settlement resolves actual
and potential civil claims by the Department of Justice (DoJ), several State
Attorneys General (State AGs), the Federal Deposit Insurance Corporation
(FDIC), the National Credit Union Administration (NCUA) and the Federal
Housing Finance Agency (FHFA) relating to residential mortgage-backed
securities (RMBS) activities by JPMorgan Chase, Bear Stearns and Washington
Mutual.
Under the settlement, JPMorgan Chase will pay a total of $9 billion in cash
and provide $4 billion in borrower relief. The cash portion consists of a $2
billion civil monetary penalty and $7 billion in compensatory payments,
including a previously announced $4 billion payment to resolve FHFA's
litigation claims. Borrower relief will be in the form of principal reduction,
forbearance and other direct benefits from various relief programs. JPMorgan
Chase has committed to complete delivery of the promised relief to borrowers
before the end of 2017.
JPMorgan Chase is fully reserved for this settlement.
Chairman and CEO Jamie Dimon commented: “We are pleased to have concluded this
extensive agreement with the President's RMBS Working Group and to have
resolved the civil claims of the Department of Justice and others. Today's
settlement covers a very significant portion of legacy mortgage-backed
securities-related issues for JPMorgan Chase, as well as Bear Stearns and
Washington Mutual.”
The settlement concludes and terminates all pending civil enforcement
investigations, including those by the Department of Justice and the State AGs
from California, Delaware, Illinois, Massachusetts and New York, relating to
RMBS activities by JPMorgan Chase, Bear Stearns and Washington Mutual.
The settlement also concludes and terminates all civil litigation claims
brought by FDIC, FHFA and NCUA relating to securitizations of residential
mortgage loans by JPMorgan Chase, Bear Stearns and Washington Mutual.
As a result of this settlement and the proposed settlement of representation
and warranty claims announced on Friday, November 15, the company has resolved
a significant portion of the RMBS-related civil litigation claims being
defended by the company, and substantially all of the claims brought by
federally insured and federally controlled entities.
JPMorgan Chase continues to cooperate with the ongoing criminal investigation
by the Department of Justice.
Conference Call Details
The company will host a conference call today, Tuesday, November 19, 2013 at
4:30 p.m. (Eastern) to detail today's settlement and other recently announced
mortgage-related resolutions.
The live audio webcast and presentation slides will be available on
www.jpmorganchase.com under Investor Relations, Investor Presentations prior
to the call. The general public can also access the conference call by dialing
the following numbers: (866) 541-2724 or (866) 786-8836 in the U.S. and
Canada; (706) 634-7246 for international callers. Please dial in 10 minutes
prior to the start of the call.
The replay will be available via webcast on www.jpmorganchase.com under
Investor Relations, Investor Presentations. A replay of the conference call
will also be available beginning at approximately 8:00 p.m. on November 19
through midnight, December 3 by telephone at (855) 859-2056 or (800) 585-8367
(U.S. and Canada); (404) 537-3406 (International); use Conference ID #
14559117.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in