JPMorgan’s $4.5 billion settlement in jeopardy
City Index October 31, 2014 8:40 PM
<p>The Triaxx entities claim more is due to them over misrepresentations in the quality of mortgages packaged into securities.</p>
A group of funds will object to JPMorgan Chase & Co's $4.5 billion (£2.8 billion) offer to settle investors claims over misrepresentations in the quality of mortgages packaged into securities.
The Triaxx entities received court permission yesterday (October 29th) to intervene in a proceeding seeking judicial approval of the JPMorgan settlement, people close to the case told Reuters.
JPMorgan last year reached the agreement with 20 institutional investors in 330 residential mortgage-backed securities trusts, but the Triaxx entities argue that they hold certificates with an original balance of some $1.5 billion in 13 of the covered trusts, according to court papers.
Their claims are "potentially worth far more than the small percentage of the $4.5 billion settlement than they would receive," John Moon, an attorney for Triaxx, argued in the papers seen by Reuters.
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