The banks did not admit or deny guilt. JPMorgan agreed to pay $296.9 million to settle the charges and Credit Suisse agreed to pay $120 million.
Robert Khuzami, director of the S.E.C.’s Division of Enforcement, in a statement called mortgage products like those sold by the banks “ground zero in the financial crisis.”
Friday’s settlement ends the agency’s investigation into how JPMorgan dealt with its mortgage securities acquired through Bear Stearns, the troubled unit it purchased in the depths of the 2008-9 financial crisis.
Several other Wall Street firms also packaged and sold subprime mortgages, which resulted in billions of dollars in losses for investors.
The S.E.C. has brought more than 100 cases related to the financial crisis, but has struggled to secure a big victory against individuals responsible for some of the reckless behavior that nearly felled the American economy.
Article source: http://www.nytimes.com/2012/11/17/business/jpmorgan-and-credit-suisse-to-pay-417-million-in-mortgage-settlement.html?partner=rss&emc=rss
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