JPMorgan, Credit Suisse settle mortgage bond charges for $417 million

The Securities and Exchange Commission claims the two banks misled investors about the quality of mortgage-backed securities that they sold prior to the financial crisis

JPMorgan Chase & Co. and Credit Suisse Group AG have agreed to pay $416.9 million to settle Securities and Exchange Commission (SEC) allegations that the banks misled investors about the quality of their mortgage-backed securities.

According to the agency, both banks neglected to disclose the defective nature of the mortgages they were pooling into securities and selling. In one instance, the government says, JPMorgan told investors that only four of the loans underlying one $1.8 billion block of securities were delinquent, when the real number was 620.

Alanna Byrne

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