Public Employee Pensions Gets $299M In JPMorgan Chase Settlement

SACRAMENTO (CBS SF) – JPMorgan Chase & Co. will pay nearly $300 million to California’s public employee and teacher pension funds as part of a settlement related to mortgage-related investments.

Attorney General Kamala Harris announced Tuesday that the $299 million in damages will settle claims that the company misrepresented the value of residential mortgage-backed securities sold to the California Public Employees Retirement System and California State Teachers’ Retirement System between 2004 and 2008.

Harris said JPMorgan profited by giving the pension funds incomplete information on the risks of many of the underlying mortgages.

The settlement is part of a broader, $13 billion settlement between the investment company and the U.S. Department of Justice. Under the larger settlement, JPMorgan will provide $4 billion in mortgage relief to the states, including California.

(Copyright 2013 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services may have contributed to this report.)

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