JPMorgan settles for $400 million with Syncora over mortgage-backed securities

The bond insurer claimed Bear Stearns misrepresented the quality of the securities

When compared to a $13 billion Department of Justice (DOJ) bill or a $2.6 billion settlement for dealings with Bernie Madoff, JPMorgan Chase & Co’s latest settlement may seem like chump change. However, the company’s deal with bond insurer Syncora Guarantee Inc. shows that the bank’s legal woes related to the financial crisis aren’t over yet.

Syncora announced in a financial statement on Feb. 28 that JPMorgan will pay $400 million to lawsuits over toxic mortgage-backed securities. Syncora had brought the suits against JPMorgan to recover losses created from securities created and sold by JPMorgan-purchased Bear Stearns and Co., as well as Bear Stearns’ EMC Mortgage affiliate.

Assistant Editor

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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