JPMorgan Chase & Co., 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.