CalPERS to Receive $261 Million from JP Morgan Settlement
CalPERS will be on the receiving end of US$ 261 million in damages arising from a settlement entered into by JP Morgan Chase & Co., which were made public this morning.
In the US$ 13 billion settlement reached between the mega bank and the U.S. Justice Department, CalPERS will receive the quarter of a billion dollars “to make CalPERS whole on $221.6 million in losses the pension fund sustained on investments in mortgage-backed securities sold or underwritten by the bank,” said CalPERS in a statement.
Rumors of the record settlement amount have been circulating at least since October, but weren’t officially confirmed until this morning. Immediately after the news was released JPM stock rose 100 bps. JP Morgan has stated previously that it has reserved US$ 23 billion for legal costs.
CalPERS still owns roughly 11 million shares in the besieged giant according to filings made available on the November 12.
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