| NEW YORK, March 3
NEW YORK, March 3 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 Feb. 24 but had not revealed the
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
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.
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.
In August, JPMorgan also resolved claims by bond insurer
Assured Guaranty Ltd over mortgage-backed securities. Litigation
with Ambac Financial Group Inc, another insurer, is pending.
Home loans such as those issued by the Bear Stearns
"securitization machine," as the bond insurer's lawsuits have
called it, were at the center of the financial crisis. As the
loans became delinquent, mortgage-backed securities collapsed,
helping to trigger a wider market meltdown.
The cases are Syncora Guarantee v. EMC Mortgage Corp, U.S.
District Court for the Southern District of New York, No.
09-cv-3106; and Syncora Guarantee v. JPMorgan Securities,
Syncora Guarantee v. EMC Mortgage, and Syncora Guarantee v. EMC
Mortgage, New York state Supreme Court, New York County, Case
Nos. 651566/2011, 650420/2012 and 653519/2012.