Mortgage News
JP Morgan could face $13bn fine
JP Morgan could face a record fine of up to $13bn (£8bn) to settle investigations into its mortgage-backed securities, according to the Wall Street Journal.
The fine relates to investments sold by the giant investment bank secured against mainly sub-prime mortgages.
The default on sub-prime mortgages in the US lit the touchpaper for the global economic meltdown.
JP Morgan is alleged to have sold the investments in the knowledge that the mortgages backing them were highly risky – and to have taken market positions hedging against defaults.
JP Morgan says it has set aside a fund of $23bn to deal with mounting legal costs.
