Bloomberg reports that JPMorgan, which will pay $296.9m, resolved claims that it made misstatements about delinquency data for loans packaged into securities and that Bear Stearns Cos., which the bank acquired in 2008, didn’t tell investors it kept reimbursements on soured loans, the Securities and Exchange Commission said Friday in a statement. Credit Suisse, which is paying $120m, was also faulted for disclosures on reimbursements.
The SEC is seeking to wrap up probes into how banks bundled and pitched investments tied to risky home loans, after being accused by lawmakers and investors of failing to punish Wall Street for misconduct that may have fueled the housing bubble and financial crisis. JPMorgan already has been sued by state and federal watchdogs over sales of mortgage-backed securities to Fannie Mae and Freddie Mac and loans sold to investors by Bear Stearns.
'Misrepresentations in connection with the creation and sale of mortgage securities contributed greatly to the tremendous losses suffered by investors once the U.S. housing market collapsed', the SEC’s enforcement chief, Robert Khuzami, said in the statement.
JPMorgan and Credit Suisse didn’t admit or deny wrongdoing in settling the agency’s claims.
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