Mortgage group concerned about payment structures for fines

Group says large banks have the option to leverage loans they don’t own in order to settle violations

While the Department of Justice (DOJ) and J.P. Morgan and Chase Co. have still yet to reach a settlement to resolve a number of pending probes, investors are concerned that they could be unfairly required to shoulder the burden the banks pay out.

A group of mortgage bond investors has penned a letter to the DOJ, asking it to prevent any bank from using mortgage-backed security adjustments to pay fines. They did not directly imply that the settlement they were talking about stemmed from the ongoing discussions between JP and the DOJ, but raised concerns surrounding settlements with any major bank.

Executive Editor

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Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

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