{"id":5719,"date":"2015-01-10T00:00:00","date_gmt":"2015-01-10T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/01\/jpmorgan_to_pay_500m_to_resolv"},"modified":"2022-03-11T13:39:17","modified_gmt":"2022-03-11T19:39:17","slug":"jpmorgan-to-pay-500m-to-resolv","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/jpmorgan-to-pay-500m-to-resolv\/","title":{"rendered":"JPMorgan to Pay $500M to Resolve Mortgage Settlement Involving Bear Stearns, Says Source"},"content":{"rendered":"

Reuters<\/em> and Bloomberg<\/em> are reporting that according to person familiar with the case, JPMorgan Chase (JPM) <\/a>has consented in principal to resolve a class action case related to Bear Stearns\u2019 sale of $17.58B of faulty mortgage securities<\/a> for $500 million. JPMorgan purchased Bear Stearns in 2008.<\/p>\n

The agreement settles claims that Bear Stearns violated federal securities laws when, from May 2006 to April 2007. it sold certificates backed by over 47,000 primarily subprime and low documentation \u201cAlt-A\u201d mortgages in over a dozen offerings. Almost all certificates were eventually reduced to \u201cjunk\u201d status even though 92% of them had been given \u201ctrip-A\u201d ratings previously.<\/p>\n

The plaintiffs, led by the New Jersey Carpenters Health Fund and, the Public Employees\u2019 Retirement System of Mississippi, claim that offering documents included misleading and false statements about underwriting guidelines that Bear\u2019s EMC Mortgage unit and other lenders used, as well as inaccuracies related to associated property appraisals. According to the lawsuit, because of the omissions and false statements, the class bought certificates that were a lot risker than what they were represented as and unequal in quality to other investments that received the same credit rating.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Reuters and Bloomberg are reporting that according to person familiar with the case, JPMorgan Chase (JPM) has consented in principal to resolve a class action case related to Bear Stearns\u2019 sale of $17.58B of faulty mortgage securities for $500 million. JPMorgan purchased Bear Stearns in 2008. The agreement settles claims that Bear Stearns violated federal […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3807,3752,3958,4001],"tags":[],"class_list":["post-5719","post","type-post","status-publish","format-standard","hentry","category-bear-stearns","category-financial-firms","category-jp-morgan-chase","category-mortgage-fraud"],"yoast_head":"\nJPMorgan to Pay $500M to Resolve Mortgage Settlement Involving Bear Stearns, Says Source — Investor Lawyers Blog — January 10, 2015<\/title>\n<meta name=\"description\" content=\"Reuters and Bloomberg are reporting that according to person familiar with the case, JPMorgan Chase (JPM) has consented in principal to resolve a class — January 10, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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