The figure was included in a financial statement for 2013 issued by
Syncora Holdings Ltd on Friday. Syncora had announced an agreement
on February 24 but had not revealed the amount.
Brian Marchiony, a spokesman for JPMorgan, declined on Monday to
comment on the Syncora settlement.
Syncora brought several cases against JPMorgan to recover losses on
securities created and sold by the former Bear Stearns and Co and
its EMC Mortgage affiliate. JPMorgan bought Bear Stearns in 2008.
The bond insurer claimed the bank misrepresented the quality of
loans underlying the securities and that it was deceived into
Faced with federal government action and significant legal costs,
JPMorgan has sought to put its residential mortgage-backed
securities problems behind it.
In November, JPMorgan agreed to pay $13 billion to settle claims
related to mortgage-backed securities with the U.S. government.
The same month, it agreed to pay $4.5 billion to settle claims by a
group of 21 institutional investors who lost money on
mortgage-backed securities that soured during the 2008 housing-led
In August, JPMorgan also resolved claims by bond insurer Assured
Guaranty Ltd over mortgage-backed securities. Litigation with Ambac
Financial Group Inc, another insurer, is pending.
[to top of second column]
Home loans such as those issued by the Bear Stearns "securitization
machine," as the bond insurer's lawsuits have called it, were at the
center of the financial crisis. As the loans became delinquent,
mortgage-backed securities collapsed, helping to trigger a wider
The cases are Syncora Guarantee v. EMC Mortgage Corp, U.S. District
Court for the Southern District of New York, No. 09-cv-3106; and
Syncora Guarantee v. JPMorgan Securities, Syncora Guarantee v. EMC
Mortgage, and Syncora Guarantee v. EMC Mortgage, New York state
Supreme Court, New York County, Case Nos. 651566/2011, 650420/2012
(Reporting by Karen Freifeld; editing by
[© 2014 Thomson Reuters. All rights
Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.