The $299 million in damages will settle claims that the company misrepresented the value of residential mortgage-backed securities sold to the California Public Employees Retirement System and
"JP Morgan Chase profited by giving
The settlement is part of a broader, $13 billion settlement between the investment company and the
Harris said her office's investigation found that documents provided by the company did not accurately disclose the nature of the underlying mortgages and that the company did not properly eliminate risky loans from the securities it was offering the pension funds.
The settlement will reimburse the funds for the losses they took for investing in mortgage-backed securities offered by JPMorgan, Washington Mutual Bank and Bear Stearns. JPMorgan acquired the other two companies in 2008 and has said most of its mortgage-backed securities came from them.
The federal settlement includes $4 billion in mortgage relief for consumers nationwide who were harmed by the same three firms. The money will go toward loan modifications, forgiving the principal on mortgages and efforts to improve blighted neighborhoods.
Harris' office could not predict how much of the $4 billion will come to
That deal was with the nation's largest banks, including JPMorgan.