JPMorgan settles Pittsburgh lawsuit

Jamie Dimon

JPMorgan agreed to settle a Pittsburgh lender’s lawsuit after a judge ordered the bank to turn over the government’s draft complaint at the centre of its $13bn deal with regulators.

Bloomberg reports that lawyers for the Federal Home Loan Bank of Pittsburgh said last week in Pennsylvania state court that they had reached an agreement, without disclosing terms of the deal.

The Pittsburgh FHLB sued JPMorgan and credit-ratings companies in 2009 over losses on $1.8bn in mortgage-backed securities it bought in 2006 and 2007.

The deal came less than a month after a judge ordered JPMorgan to give the plaintiff’s lawyers a draft of the U.S. Justice Department’s proposed complaint that the record settlement was based on. That deal resolved allegations involving sales of mortgage bonds that officials said helped fuel the financial crisis of 2008.

The Pittsburgh FHLB argued that the conduct and transactions at issue in its case were the same as those addressed in the settlement with the government. The draft complaint, the bank said in court papers, would provide a more detailed account of the federal probe and reveal the name of a JPMorgan employee who cooperated with the federal investigation.

To access the complete Bloomberg article hit the link below:

JPMorgan Settles Pittsburgh Bank Suit Probing U.S. Deal 

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image: © Steve Jurvetson

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