JPMorgan pays $400m to settle litigation

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IOL pic mar4 jpmorgan signage Reuters A sign is seen outside the JPMorgan office in Los Angeles, California. File picture: Lucy Nicholson

New York -

US banking giant JPMorgan Chase agreed to pay $400-million in cash to settle litigation filed by Syncora Guarantee over mortgage-backed securities, according to the bond insurer.

Syncora said it would drop cases against JPMorgan in exchange for the $400m payment, according to Syncora's 2013 financial statement filed on Friday.

The securities sold to Syncora originated from Bear Stearns, which JPMorgan acquired in 2008 amid the financial crisis. Syncora accused JPMorgan of misrepresenting the quality of mortgage assets linked to the securities.

The Syncora deal comes on the heels of several major JPMorgan settlements, including a $13-billion deal with the Department of Justice in November 2013 that resolved a series of US and state lawsuits over the sale of toxic mortgage-backed securities. - Sapa-AFP

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