JPMorgan Announces Settlement with SEC over Disclosures

In a ""regulatory filing"":http://investor.shareholder.com/jpmorganchase/secfiling.cfm?filingID=19617-12-308 released Thursday, ""JPMorgan Chase"":http://www.jpmorganchase.com/corporate/Home/home.htm revealed it has reached a settlement with the ""Securities and Exchange Commission"":http://www.sec.gov/index.htm (SEC) to resolve claims against itself and Bear Stearns, which it acquired in 2008.

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According to the filing, JPMorgan ""has reached an agreement in principle with the staff of the SEC to resolve"" claims under investigation by the regulatory agency. [COLUMN_BREAK]

The agreement is subject to SEC and court approval.

One claim being investigated involved delinquency disclosures in the sale of a single mortgage-backed security (MBS). Another claim had to do with disclosures of settlements of claims brought against originators of loans contained in Bear Stearns securities.

The SEC notified JPMorgan in January that it was considering pursuing claims arising from an investigation of JPMorgan's and Bear Stearns' practices.

While the settlement has likely lifted some of the weight off of JPMorgan's shoulders, it isn't the only legal headache the bank is dealing with right now. Just days before the SEC filing, a U.S. district judge ""refused a motion"":https://themreport.com/articles/jpmorgan-chase-fails-in-bid-to-dismiss-fhfa-suit-2012-11-06 filed by JPMorgan to dismiss a case brought against it (and several other major lenders) by the Federal Housing Finance Agency (FHFA).

In its complaint, the agency alleges JPMorgan misrepresented the underwriting quality of loans contained in MBS sold to Fannie Mae and Freddie Mac, leading to massive losses when the loans collapsed.