JPMorgan Chase and Credit Suisse have agreed to settlements with the Securities and Exchange Commission totaling $417 million over their packaging and sale of troubled mortgage securities to investors, the agency said Friday. The settlements are the latest major penalties extracted by the agency in a broad investigation into the way Wall Street firms bundled mortgages into complex investments before the financial crisis.
The S.E.C. has leveled claims against a handful of major banks, including JPMorgan and Credit Suisse, that they painted a deceptively rosy portrait of the securities while some of the underlying loans were already showing signs of delinquency.
Source: New York Times. Read full article. (link)