New York: A US federal judge on Wednesday approved a $153.6 million settlement between JPMorgan Chase & Co and the top US market regulator over allegations a mortgage CDO product defrauded the bank’s investors.
The US Securities and Exchange Commission (SEC) and the second-largest US bank announced the settlement on 21 June to settle civil charges that JPMorgan had defrauded investors who bought mortgage securities sold just before the housing market collapsed.
The settlement was approved at a hearing in New York by US district judge Richard Berman, who described it as “another important step for the financial industry and the SEC in righting the wrongs of the recent financial crisis.”
The cases are SEC vs. JPMorgan Securities LLC, US district court, Southern District of New York, No. 11-04206; and SEC vs. Steffelin in the same court, No. 11-04204.