JP Morgan and Credit Suisse to pay $417 million to settle securities charges
November 18 , 2012
JP Morgan Chase and Credit Suisse are to pay a total of $417 million to settle charges over misleading investors in residential mortgage-backed securities offerings, U.S. regulators said on Sunday.
JP Morgan has agreed to pay $296.9 million while Credit Suisse will pay $120 million, the Securities and Exchange Commission (SEC) said.
Both banks agreed to settle without admitting or denying the charges.
The SEC plans to distribute the money to harmed investors.
According to the SEC, JP Morgan received fees of more than $2.7 million, and investors suffered losses of around $37 million on these undisclosed bad loans.
Similar charges were made against Credit Suisse.