JPMorgan Chase will pay $995 million to bond insurer Ambac Financial Group to settle insurance disputes related to residential mortgage-backed securities, according to an article in Reuters.
This is good news for the monoline, Ambac. According to the article, the settlement will have a positive impact on the company’s fourth-quarter operating results and its claims paying resources.
From Reuters:
The agreement will not have a material effect on JPMorgan's first quarter earnings, the Wall Street bank said in a regulatory filing.
The settlement also provides for the withdrawal of Ambac's objection to JPMorgan's $4.5 billion settlement with trustees of trusts issued by JPMorgan, Chase and Bear Stearns.
This news closely follows reports earlier this month that Goldman Sachs also reached a $5 billion settlement over claims related to toxic mortgage bonds sold to investors in the run up to the financial crisis.
JPMorgan Chase also announced late Monday night that it has agreed to pay the remnants of Lehman Brothers Holdings Inc. $1.42 billion in cash, according to an article in The Wall Street Journal.
