JPMorgan, Credit Suisse settle with US SEC for $511m
WASHINGTON/NEW YORK (REUTERS) - JPMorgan Chase & Co and Credit Suisse Group AG will pay a combined US$416.9 million (S$511 million) to settle United States (US) civil charges that they misled investors in the sale of risky mortgage bonds prior to the 2008 financial crisis, regulators said on Friday.
JPMorgan will pay US$296.9 million, while Credit Suisse will pay US$120 million in a separate case, with the money going to harmed investors, the US Securities and Exchange Commission (SEC) said.
Both settlements addressed alleged negligence or other wrongdoing in the packaging and sale of risky residential mortgage-backed securities (RMBS), including at the former Bear Stearns Cos which JPMorgan bought in 2008.
The banks settled without admitting wrongdoing, and in separate statements said they were pleased to settle.