The JPMorgan Settlement

Following on from our prior RMBS litigation coverage (FHFA RMBS Litigation Totals and A Proliferating "Putback" Problemo) we wanted to add some color to the recent $13bn settlement by JPMorgan.

Initial settlement details:

1. JPMorgan may not pursue indemnification claims from the FDIC for any matters covered by the settlement. 
2. Included in the settlement is the $4 billion FHFA settlement regarding private-label RMBS losses ($1.26 billion to Fannie Mae; $2.74 billion to Freddie Mac). 
3. Previously mentioned $680mm and $480mm rep & warranty settlements with Fannie Mae and Freddie Mac, respectively, are not included in this agreement. (This leaves open the possibility for JPM to claim that the FDIC is responsible for WaMu originations in the rep & warranty settlement.) This could impact the net result of Deutsche Bank National Trust Co. v. Federal Deposit Insurance Corp. et al. 
4. Criminal probe is not closed. 
5. Acknowledgment of misrepresentation, but no explicit admission of wrongdoing.

Our additions are in blue within the table. Sources are at the end.

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http://www.justice.gov/opa/pr/2013/November/13-ag-1237.html http://www.fhfa.gov/webfiles/25649/FHFAJPMorganSettlementAgreement.pdf http://www.justice.gov/iso/opa/resources/61620131119191331856335.pdf http://www.ncua.gov/News/Pages/NW20131119JPMorganChase.aspx http://www.justice.gov/iso/opa/resources/72420131119202254491668.pdf http://www.fdic.gov/news/news/press/2013/pr13103.html http://www.justice.gov/iso/opa/resources/51720131119202421482972.pdf 
https://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-announces-300-million-settlement-jp-morgan http://www.businesswire.com/news/sacbee/20131119006821/en http://news.delaware.gov/2013/11/19/biden-secures-nearly-20-million-for-delaware/ 
http://www.chicagobusiness.com/article/20131119/BLOGS02/131119738/illinois-pension-funds-get-100-million-in-chase-settlement# 
 http://www.mass.gov/ago/news-and-updates/press-releases/2013/2013-11-19-jpmorgan-settlement.html http://www.ag.ny.gov/press-release/ag-schneiderman-led-state-federal-working-group-announces-13-billion-settlement http://www.justice.gov/iso/opa/resources/64420131119164759163425.pdf