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JPMorgan Pays $400 Million to Settle Syncora Mortgage-Bond Suits

JPMorgan Chase & Co. (JPM), the biggest U.S. bank, agreed to pay bond insurer Syncora Guarantee Inc. $400 million to end lawsuits over mortgage-backed securities.

The insurer had claimed JPMorgan and firms the bank had acquired misrepresented the quality of loans included in securitizations. Syncora, which announced a deal on Feb. 24 without disclosing terms, said in a Feb. 28 annual regulatory report on its website that it’s getting $400 million in cash from the New York-based lender.

JPMorgan Chief Executive Office Jamie Dimon, 57, has said his preference is to settle disputes tied to behavior from the financial crisis. He agreed to more than $23 billion in legal and regulatory settlements last year.

Brian Marchiony, a spokesman for the bank, declined to comment on the deal. Reuters reported the settlement figure earlier today. The settlement couldn’t immediately be confirmed in court records.

To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net

To contact the editor responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net

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