JPMorgan reaches agreement to settle SEC mortgage probes

November 8, 2012 by · Leave a Comment
Filed under: Legal News 

This initial report is pretty thin on details and the only real reference is to an old settlement that occurred in 2010 wit a mortgage related issue.   We can be assured a major press release will be announced soon give us more details on exactly what this is regarding and if any guilt it admitted.   My bet in on “no wrong-doing” which is the trend lately in the wake of the largest financial crisis…..ever.

We didn’t get executives on the stand receiving justice, what we can hope for is real regulation and prohibits all this cowboy behavior tied to basic human greed.   If not, then it will happen again and maybe that is what it will take to put this situation into the proper perspective.   I love capitalism and finance, but it has to be done with the national and global interest in the forefront.   We use these tools to bring betterment to everyone as a whole and provides incentives for people to do the “bare maximum”.

 

Bloomberg – JPMorgan Chase & Co., the biggest U.S. bank, reached a settlement with regulators to resolve claims tied to its home-loan business and said it would buy back as much as $3 billion of shares.

The agreement in principle with the U.S. Securities and Exchange Commission covers two investigations related to mortgage-backed bonds handled by JPMorgan and Bear Stearns Cos., which the bank acquired in 2008, New York-based JPMorgan said today in a filing.

“The firm has reached an agreement in principle with the staff of the SEC to resolve” some claims, JPMorgan said in the filing. “The agreement in principle is subject to approval by the SEC, as well as court approval.”

The SEC has issued notices to banks including JPMorgan in probes focusing on mortgage securities and whether lenders failed to disclose underlying credit weaknesses. Goldman Sachs Group Inc. paid $550 million in 2010 to settle SEC claims that it misled investors on a mortgage-linked investment in 2007. In that case, Goldman Sachs said it made a “mistake” in omitting disclosures.

One investigation related to delinquency disclosures in a single mortgage-backed security deal, JPMorgan said in today’s filing. The other involved claims against the lender and Bear Stearns over disclosures of settlements of disputes against originators of loans included in Bear Stearns securitizations.

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