JPMorgan settles Bear Stearns claims in court

Sorry Bear

JPMorgan Chase has agreed to pay $18.3m to settle claims that its Bear Stearns unit failed to disclose the actual interest rates on adjustable-rate mortgage documents.

Bloomberg News Reports that U.S. District Judge S. James Otero in Los Angeles will consider whether to approve the agreement at a October 7 hearing, according to a court filing.

The lawsuit was filed in 2007 by plaintiffs who refinanced their home loans with adjustable-rate mortgages.

JPMorgan acquired Bear Stearns in June 2008. The loans were acquired by a Bear Stearns unit, EMC Mortgage, based in Lewisville, Texas, that specialized in buying and servicing troubled mortgages.

JPMorgan, led by Chief Executive Officer Jamie Dimon, 57, is contending with criminal investigations of its energy-trading and mortgage-backed securities operations.

The firm also faces U.S. probes of its anti-money-laundering safeguards, foreclosures, credit-card collections, and $6.2bn in loses last year on botched derivatives bets by a U.K. trader known as the London Whale.

To access the complete Bloomberg article hit the link below

JPMorgan Agrees to $18.3 Million Mortgage Lawsuit Accord

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