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- Al Gore 'Not Very Smart,’ But Became Filthy Rich Using Simple Investing Formula - Charlie Munger
- U.S. Regulators, Lawmakers Support Volcker Rule Revamp at Hearing
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- A New Risk for Goldman, Morgan Stanley in Stress Tests (subsc reqd)
- A Trump Bump for Law Firm of President’s Lawyer - Kasowitz Benson Torres
- JPMorgan, BofA, Goldman, Citi, Wells Fargo Pass Fed's Stress Test
- Blackstone Stock Still Trading at $31 - Its IPO Price From 10 Years Ago
- NJ Resident and NY-Based Global FX Club Charged with Solicitation Fraud, Misappropriation - CFTC
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JPMorgan to Pay $400Mn to Settle Toxic MBS Litigation
[Photo: BreakingEnergy.com]
JPMorgan has settled a $2 billion lawsuit by agreeing to pay $400 million to the U.K. subsidiaries of Ambac Assurance and Assured Guaranty. The insurers were suing over toxic mortgage-backed securities that the investment bank sold to the insurers and their clients just prior to the 2008 credit crisis. Thus ends, yet, another credit crisis lawsuit.
JPMorgan had invested ScottishRe funds in non-agency mortgage-backed securities and, according to the plaintiffs, ignored its investment mandate by continuing to buy mortgage bonds even as warning signs of a market deterioration began to multiply. Scottish Re and its associated securitization vehicles subsequently were hit by multiple downgrades from ratings agencies, which left them with heavy losses.
