View more on these topics

JP Morgan seeks $4bn settlement to US misselling claims

JP Morgan Chase is in discussions with the US regulator to settle allegations it missold mortgage-backed securities.

The Financial Times reports the bank is looking to settle through a single $4bn (£2.5bn) payment covering all outstanding allegations from state and federal task forces.

The allegations involve a lawsuit from the New York attorney-general along with allegations from US attorney’s offices in California, Pennsylvania and the justice department.

The FT reports prosecutors in California were set to file a lawsuit yesterday before JPM revived talks to reach a settlement.

Last week, the bank was fined a total of £572m by UK and US regulators over the “London Whale” $6.2bn trading losses incurred by the bank.

The penalty was made up of a £137.6m FCA fine, a US Securities and Exchange Commission fine of $200m (£124.4m), while the Office of the Comptroller of the Currency fined the firm $300m, and the Federal Reserve levied a fine of $200m.

In August, it emerged US authorities were demanding more than $6bn (£3.87bn) from JP Morgan Chase amid allegations of misselling securities to government-backed mortgage companies.

In 2011, JP Morgan and 17 other banks were sued by the Federal Housing Finance Agency, a government regulator, for falsely claiming loans backing $33bn of mortgage-backed securities complied with underwriting guidelines.

Recommended

Money-Cash-20-Note-Currency-UK-700x450.jpg

FCA sets out how providers tried to buy distribution

The FCA has set out the kind of arrangements between providers and advisers it is concerned about following its thematic review into inducements. In its guidance consultation, published last week, the regulator set out examples of agreements which could have breached FCA rules. The FCA cited one advice firm that secured substantial payments from a […]

Labour cautions on retrospective group commission ban; pushes standard 50bps charge

Shadow pensions minister Gregg McClymont has urged caution as policymakers eye a retrospective ban on consultancy charging and commission associated with group schemes. The Government has banned consultancy charging since May when it first announced its plans but it is also considering retrospective action on charges levied between January and May. The Department for Work […]

Adam-Norris-2013-700.jpg

Hargreaves Lansdown investor eyes deals with £100m war chest

One of Hargreaves Lansdown’s biggest shareholders has amassed a £100m war chest to invest in retail financial services firms across the protection, at-retirement and alternative investment markets. Adam Norris, who set up Hargreaves’ pension and annuities arm Pensions Direct, is looking to take a stake of between 25 and 30 per cent in advice firms […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment