Home > Finance, Law > Tally of the Biggest J.P. Morgan Settlements (Sept. 2011 – Sept. 2013)

Tally of the Biggest J.P. Morgan Settlements (Sept. 2011 – Sept. 2013)

Wednesday, September 25th, 2013 Leave a comment Go to comments

This morning, the Wall Street Journal reported that J.P. Morgan offered $3 billion for a global settlement of its legal hurdles.

Here’s a tally of the biggest J.P. Morgan settlements in the past few years:

Sept. 19, 2013 — $920 million – In settlements with the OCC, the SEC, the Fed and the U.K. Financial Conduct Authority, J.P. Morgan agreed to pay a total of $920 million to settle all claims about its management and oversight of traders involved in the London Whale debacle. The bank also admitted wrongdoing in the matter, a trade that cost the bank more than $6 billion.

Sept. 19. — $389 million – The bank paid $80 million in fines and refunded $309 million to credit-card customers to settle regulators’ charges that it harmed consumers by allegedly making errors in hundreds of thousands of debt-collection lawsuits and leading more than two million credit-card customers to buy services they didn’t want.

July 2013 — $410 million – FERC alleged J.P. Morgan Ventures Energy Corp. traders gamed rules that help set the cost of electricity in California and the Midwest with 12 manipulative trading schemes starting in 2010. The DOJ is now investigating the claims. The $410 million included a $285 million fine and the bank agreed to give back $125 million in profits.

January 2013 — $1.8 billion – In two separate agreements, the bank contributed $1.8 billion to the nationwide bank settlement on allegations the banks improperly carried out foreclosures during the housing crisis, including employing so-called robo-signers. The bank also agreed to contribute $3.7 billion in aid to troubled homeowners and nearly $540 million in refinancing. The first part was reached in a nationwide settlement in February 2012.

November 2012 — $269.9 million – The bank settled with the SEC over the creation and underwriting of mortgage-backed securities.

August 2012 — $1.2 billion – The bank disclosed in a filing its share of a broad settlement over interchange allegations against the banks and Visa and Mastercard.

April 2012 — $20 million – CFTC alleged that JPM counted Lehman’s futures customers’ accounts in calculations used to determine the firm’s intra-day credit, even though the money belonged to customers.

July 2011 — $228 million – The SEC had alleged that from 1997 to 2005, the bank rigged municipal bond auctions.

June 2011 — $153.6 million – The SEC alleged that JP Morgan sold synthetic CDOs to investors in 2007 without telling them that hedge fund Magnetar Capital LLC helped pick the underlying products and bet against them.

April 2011 — $27 million – J.P. Morgan agreed to settle class-action lawsuit that it overcharged thousands of active-duty military members and wrongly foreclosed on 18, breaking rules that.

Source: J.P. Morgan’s Legal Headaches: A Tally (WSJ)

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