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JP Morgan pays £95m to settle US mortgage fraud case
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Beth Rudolf, director of delivery at the Conveyancing Association (CA)JP Morgan Chase has agreed to pay £94.6m ($153.6m) to settle charges that it misled the buyers of complex mortgage investments as the US housing market was collapsing in 2008.
Regulators said the bank’s securities division had failed to tell customers that a hedge fund had helped select the portfolio and then bet it would fail, reported the BBC.
The fine means investors who lost as a result will get their money back.
According to the BBC, JP Morgan neither admitted nor denied any wrongdoing under the settlement.
The bank said it had lost nearly £555m ($900m) on the investment and it has reviewed similar mortgage investments and paid £34m ($56m) to some investors.
Yesterday, US credit union regulator the National Credit Union Administration announced it would sue both JP Morgan and the Royal Bank of Scotland for more than £493M ($800m) for allegedly misselling mortgage-backed securities.
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