JPMorgan tentatively agrees to $4.5 billion settlement
JPMorgan Chase has agreed to pay $4.5 billion to settle claims by 21 major institutional investors who lost money on mortgage-backed securities in the collapse of the U.S. housing market, the bank said in a release.
The bank will make a binding offer to the trustees of 330 residential mortgage-backed securities trusts issued by the bank and Bear Stearns, which it took over during the financial crisis.
"This settlement is another important step in J.P. Morgan's efforts to resolve legacy related RMBS matters," said the bank in a release. "The firm believes it is appropriately reserved for this and any remaining RMBS litigation matters."
The settlement does not include trusts issued by Washington Mutual, which JPMorgan also acquired.
The investors have already committed to support the settlement and requested the trustees of the 21 major investors accept the settlement offer.
This offer will remain open until January 15, but may be extended for an additional 60 days.
—CNBC.com With Reuters