JPMorgan Pays $995 Million to Settle Ambac Lawsuits

Ambac said Tuesday in a statement that the bank will pay $995 million to end two lawsuits the New York-based insurer filed in New York state court in 2011 and 2012 over the quality of loans underlying mortgage bonds sold by Bear Stearns & Co., which was bought by JPMorgan in 2008.

As part of the deal, Ambac agreed to drop its objections to a $4.5 billion settlement between JPMorgan and institutional investors including BlackRock Inc. and Pacific Investment Management Co. over claims of faulty home loans, leaving only one objector to the pact. Ambac’s settlement clears the way for a judge to approve the larger deal, Bloomberg Intelligence analyst Elliott Stein said.

Source: Bloomberg

Leave a Reply

%d bloggers like this:
A DAILY ROUNDUP OF THE MOST FASCINATING WALL ST, COMPLIANCE AND REGULATORY NEWS.