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JP Morgan Settles Ambac Mortgage Backed Securities Litigation

March 29, 2017

Via: TheStreet

The investment management division of JP Morgan (JPM) has agreed to settle with two bond insurers over allegations it filled client investment accounts with toxic mortgage bonds as the market was turning south, just ahead of the financial crisis.

The U.K. subsidiaries of Ambac Assurance  (AAC) and Assured Guaranty  (AGO) began seeking $2 billion of damages in a New York court as early as 2008 and over the weekend agreed to settle with JPM for around $400 million, announcement on Wednesday said.

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