Investors seek $5.75 billion from JPMorgan Chase
According to MarketWatch, investors are seeking at least $5.75 billion from JPMorgan Chase (JPM) in an attempt to recover losses from mortgage-backed securities sold to prior to the financial meltdown.
The group, which includes asset managers BlackRock Inc. and Neuberger Berman Group, previously received an $8.5 billion settlement from Bank of America on similar claims.
The two sides have had on-and-off settlement discussions over the past year, said the people close to the talks. They met last week to hash out a possible deal, but no final terms have been agreed to, these people said. Kathy Patrick, a Houston lawyer with Gibbs & Bruns LLP, who represents the investor group, declined to comment on any settlement talks.
The investors are potentially emboldened by a recent, unrelated settlement where JPMorgan agreed to a tentative $13 billion deal to escape Department of Justice claims.