J.P. Morgan Chase agrees $13bn settlement over toxic MBS

The authorities accused J.P. Morgan and firms it later purchased, Bear Stearns and Washington Mutual, of selling high risk mortgage securities during the housing bubble while misrepresenting their quality. These securities later failed in huge numbers, playing a key role in the 2008 crisis. J.P. Morgan Chase acknowledged it made "serious misrepresentations" to the public about numerous RMBS transactions. Under the terms of the agreement, the firm will pay a total of $9bn in cash and provide $4bn in borrower relief. The US Justice Department said the settlement is the "largest ever ...