JPMorgan Chase and Credit Suisse have agreed to pay a combined
$417 million to settle federal civil charges that they sold risky
mortgage bonds to investors that the banks knew could fail ahead of
the 2008 financial crisis.
JP Morgan did not warn investors that homeowners were behind on their payments for the mortgages tied to the bonds, the Securities and Exchange Commission said Friday. And both banks failed to properly disclose practices that allowed them to profit while investors lost millions, the SEC said.
When the real estate bubble burst, home values plunged and millions of people defaulted on their mortgages and lost their homes. Investors who bought the securities backed by mortgages lost billions.
Money from the settlement will go to the investors, the SEC said.
Most Popular Stories
- Fed Committee Optimistic About Growth Prospects
- How ESPN Became a $50B Sports Empire
- Pot's Legal in WA -- But You Should Probably Ask Your Boss
- Drive-In Movie Theaters Use Creativity to Afford Digital Switch
- Obama Cites Letter Writers in Pitching Economy
- Pau Gasol Turns Down Lakers' Offer
- U.S. Immigration Courts Facing Record Backlog
- President Obama Relishes Roadshow, but Agenda Still Stuck
- Stevie Fielder Changes Tune on Thad Cochran Vote-buying Story
- Farrell, Kitsch Rumored for Season 2 of 'True Detective'