JP Morgan And Credit Suisse Pay $417 Million To Settle Security Charges

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via BBC News

JP Morgan Chase and Credit Suisse will together pay $417m (£263m) to settle charges that they misled investors in residential mortgage-backed securities offerings, US regulators have said.

JP Morgan has agreed to pay $296.9m to settle the charges while Credit Suisse will pay $120m, the Securities and Exchange Commission (SEC) said.

Both banks agreed to settle without admitting or denying the charges.

The SEC said it plans to distribute the money to harmed investors.

The SEC said that JP Morgan received fees of more than $2.7m, and investors sustained losses of at least $37m on these undisclosed bad loans.

The bank was also charged for the failure of an investment bank it bought, Bear Stearns, to disclose its practice of obtaining and keeping cash settlements from mortgage loan originators on problem loans that Bear Stearns had sold on.

JP Morgan said it was pleased to have reached an agreement with the SEC to put these matters concerning mortgage-backed securities behind it.

Credit Suisse was accused of similar practices.

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Article courtesy bbc.co.uk

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