JPMorgan pays $400 million to settle with Syncora over toxic loans
By Karen Freifeld
NEW YORK (Reuters) - JPMorgan Chase & Co will pay $400 million to settle lawsuits brought by bond insurer Syncora Guarantee Inc over toxic mortgage-backed securities, according to the insurer.
The figure was included in a financial statement for 2013 issued by Syncora Holdings Ltd on Friday. Syncora had announced an agreement on February 24 but had not revealed the amount.
Brian Marchiony, a spokesman for JPMorgan, declined on Monday to comment on the Syncora settlement.
Syncora brought several cases against JPMorgan to recover losses on securities created and sold by the former Bear Stearns and Co and its EMC Mortgage affiliate. JPMorgan bought Bear Stearns in 2008.
The bond insurer claimed the bank misrepresented the quality of loans underlying the securities and that it was deceived into insuring them.
Faced with federal government action and significant legal costs, JPMorgan has sought to put its residential mortgage-backed securities problems behind it.
In November, JPMorgan agreed to pay $13 billion to settle claims related to mortgage-backed securities with the U.S. government.
The same month, it agreed to pay $4.5 billion to settle claims by a group of 21 institutional investors who lost money on mortgage-backed securities that soured during the 2008 housing-led financial crisis. Continued...