Attached files
| file | filename |
|---|---|
| 8-K - 8-K - JPMORGAN CHASE & CO | d629536d8k.htm |
| EX-99.1 - EX-99.1 - JPMORGAN CHASE & CO | d629536dex991.htm |
 November 19, 2013
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Exhibit 99.2 |
 Executive Summary –
Mortgage-Related Settlements
Today, the Firm has reached a $13B global resolution with governmental parties
regarding residential mortgage- backed securities (“RMBS”)
matters The global settlement amount includes:
$4B previously announced settlement with FHFA
$4B in credit related to borrower programs
Separately, the Firm also announced:
On November 15
th
–
$4.5B settlement with investors represented by Gibbs & Bruns, which if fully
approved, releases the Firm from all representations and warranties and
servicing claims related to all JPMorgan, Chase and Bear Stearns private
label RMBS trusts issued from 2005 to 2008 On October 25
th
–
$1.1B settlement with the GSEs to resolve their repurchase claims associated with
whole loan purchases from 2000 to 2008
The Firm is appropriately reserved for all of these matters
These comprehensive settlements materially reduce our mortgage-related
exposure 1 |
 Terms
of Global Residential Mortgage-Backed Securities Settlement The Firm has
reached a global settlement with certain Federal entities and certain members of the President’s RMBS
Working Group to resolve all pending civil enforcement investigations and a
significant amount of civil litigation claims relating to RMBS issued or
underwritten by JPMorgan Chase, Bear Stearns and Washington Mutual:
Department of Justice (“DOJ”)
States Attorneys General from New York, California, Illinois, Massachusetts and
Delaware Federal
Housing
Finance
Agency
(“FHFA”)
¹
Federal
Deposit
Insurance
Corporation
(“FDIC”)
¹
National
Credit
Union
Administration
(“NCUA”)
¹
Settlement of $13B:
$9B in cash, which includes:
–
$2B in civil monetary penalty
–
$4B in compensatory payment to FHFA for alleged losses relating to private label
RMBS –
Settlement announced October 25, 2013
–
$3B in other compensatory payments to the FDIC, NCUA and State AGs
$4B in credit related to borrower programs:
–
Principally
relief
in
the
form
of
modifications,
as
well
as
targeted
origination
programs
–
to
be
completed
by the
end of 2017
The Firm has agreed to waive indemnity rights against the FDIC and the WaMu
Receivership for any amount from the global settlement, including the prior
FHFA settlement, but has retained all other contractual rights protecting it from
losses relating to conduct at WaMu before its failure
The Firm did not admit to any violations of the law; as part of the global
settlement, the Firm has acknowledged the Statement of Facts
¹
Civil actions brought by the FHFA, FDIC and NCUA involving $33.8B, $2.4B and $6.3B
of securities, respectively 2 |
 Gibbs
& Bruns – Terms of RMBS Trustee Settlement
3
The
Firm
has
reached
an
agreement
to
resolve
all
representations
and
warranties
and
servicing
claims
for
all
JPMorgan, Chase and Bear Stearns private label RMBS trusts issued from 2005 to
2008: JPM has concluded negotiations with a group of institutional
investors, represented by Gibbs & Bruns, with a substantial footprint
in those trusts The
$4.5B
settlement,
if
fully
approved,
will
resolve
representations
and
warranties
and
servicing
claims
for
all
JPMorgan, Chase and Bear Stearns 2005 to 2008 trusts
This settlement does not resolve representations and warranties and servicing
claims related to Washington
Mutual
trusts;
JPM
is
pursuing
its
rights
against
the
FDIC
The servicing component includes the mandatory transfer of most delinquent loans
to sub-servicers and other changes
Institutional
investors
and
JPM
are
seeking
the
trustees’
acceptance
of
the
agreement:
The settlement agreement is subject to review and approval by the trustees for
these trusts Trustees
may
seek
court
approval
of
their
decision
to
accept
the
settlement
agreement
- |
 Remaining Mortgage-Related Risks
Criminal
investigation
by
the
DOJ
–
ongoing
and
the
Firm
is
cooperating
A narrower set of civil mortgage-related risks remains, including:
Actions by monoline insurance companies
Some additional class action and individual direct purchaser litigation
Mortgage claims relating to disputed insurance on FHA loans
4 |
 Forward-looking statements
5
This presentation contains forward
-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan
Chase & Co.’s management and are subject to significant risks and uncertainties.
Actual results may differ from those set forth in the forward-looking statements.
Factors that could cause JPMorgan Chase & Co.’s actual results to differ materially from
those described in the forward-looking statements can be found in JPMorgan Chase &
Co.’s Annual Report on Form 10-K for the year ended December 31, 2012, and Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2013, June
30, 2013, and September 30, 2013, which have been filed with the Securities and Exchange
Commission and are available on JPMorgan Chase & Co.’s website
(http://investor.shareholder.com/jpmorganchase), and on the Securities and Exchange
Commission’s website (www.sec.gov). JPMorgan Chase & Co. does not undertake to update
the forward -looking statements to reflect the impact of circumstances or
events that may arise after the date of the forward-looking statements. |