JPMorgan cuts deal with investors over mortgage-backed securities

Will pay $4.5 billion to investors

While a Department of Justice (DOJ) deal is still pending, JPMorgan Chase Co has managed to placate a group of investors who accused the bank of knowingly selling them questionable mortgage-backed securities. JPMorgan cut a check to these investors for $4.5 billion.

The deal, solidified on Nov. 15, while separate from the $13 billion settlement the banking giant has pending with the Department of Justice, could indicate an attempt by JPMorgan to clean up a string of legal concerns it has faced as a result of the securities in question. The $4.5 billion is intended to prevent additional legal action from the group of investors, and the DOJ deal would also close a number of probes pending from both the state and federal level.

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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