JPMorgan Chase agrees $13bn settlement over toxic MBS

US investment banking giant JPMorgan Chase has agreed a mammoth $13bn (£8bn) settlement in relation to sales of residential mortgage-backed securities which contributed to the financial crisis.

The authorities accused JPMorgan and firms it later purchased, Bear Stearns and Washington Mutual, of selling high risk mortgage securities during the housing bubble while misrepresenting their quality. These securities later failed in huge numbers, playing a key role in the 2008 crisis. JPMorgan Chase acknowledged it made "serious misrepresentations" to the public about numerous RMBS transactions. Under the terms of the agreement, the firm will pay a total of $9bn in cash and provide $4bn in borrower relief. The US Justice Department said the settlement is the "largest ever reache...