News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Is JP Morgan's CDO settlement the tip of the iceberg?

The bank has reached a $153.6m settlement for losses from mortgage-backed securities but analysts differ wildly on the bank’s potential liabilities for billions of dollars of claims going through US courts

JP Morgan reached a $153m settlement with the Securities and Exchange Commission on Tuesday over a complex case involving losses from mortgage-backed securities, but analysts differ wildly over whether this was less onerous than expected or just the tip of a multi-billion dollar iceberg.

The SEC alleged that JP Morgan Securities negligently failed to disclose in the offering documents that hedge fund Magnetar Capital played a significant role in the selection of the collateral for the mortgage-backed securities.

WSJ Logo