JPMorgan pressured to reveal $13bn accord complaint

Pen And Book

JPMorgan Chase should turn over a draft complaint used as the firm negotiated a $13bn deal to settle probes of its mortgage-bond sales and identify an employee who cooperated with the U.S. investigation, according to lawyers for a Pennsylvania bank.

Bloomberg reports that the Federal Home Loan Bank of Pittsburgh, which claims its losses of more than $1bn from JPMorgan mortgage-backed securities aren’t covered by the settlement, filed a request to force the company to comply with a judge’s order that it turn over the documents.

Attorneys for the Pittsburgh FHLB say the draft complaint may lead to the discovery of evidence that could be used in its own case against the bank.

State court Judge Stanton Wettick in Pittsburgh ordered JPMorgan in October to disclose drafts of a federal complaint, which an attorney for the bank said may have been turned over as part of the negotiations.

Lawyers for JPMorgan argued against such disclosure at a 17th October hearing, according to a court transcript. The bank later moved to throw out the order.

To access the complete Bloomberg article hit the link below:

JPMorgan Pressured to Reveal $13 Billion Accord Complaint

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