JPMorgan Chase has agreed to pay 1 point 42 billion dollars to Lehman Brothers Holdings to settle claims that JPMorgan drained Lehman of billions of dollars before the investment banking firm’s infamous collapse in 2008, according to JPMorgan’s 8-K filing with the Securities and Exchange Commission on Tuesday. According to the filing, Lehman had been seeking the return of 7 point 9 billion in collateral and billions in quote consequential damages based on bankruptcy and common law causes of action. Close quote
In a separate 8-K filing with the SEC, JPMorgan Chase announced that it had agreed to pay 995 million dollars to Ambac Assurance Corporation over the sale of 11 residential mortgage-backed securities sponsored by EMC Mortgage, an indirect subsidiary of JPMorgan Chase. Ambac had been seeking recovery of past and future principal and interest payments on 3 point 3 billion dollars of certain insured classes of those 11 RMBS.
Freddie Mac’s mortgage-related investment portfolio experienced a rare expansion in December, growing at a compound annualized rate of 6 point 7 percent—ending a string of eight consecutive months of contraction. The value of the mortgage-related investments portfolio climbed to 346 point 9 billion dollars with the expansion. Meanwhile, Freddie Mac’s total mortgage portfolio expanded for the 10th time in 11 months in December at a rate of 6 percent and is now valued at 1 point 941 trillion dollars.