Compliance & Regulation

JPMorgan Chase & Co. has resolved the last obstacles after months of negotiations to a record $13 billion settlement of civil state and U.S. probes over the sale of mortgage bonds.

JPMorgan, the biggest U.S. bank by assets, battled with the FDIC over who should pay some liabilities from the failed Seattle thrift.

Jose Alvarado used his control over three companies to falsify important facts given to financial institutions in order to secure loans totaling nearly $2.5 million.

A jarring anecdote about police threatening foreclosed borrowers seemed an odd choice in a speech by PNC Chairman James Rohr, who was urging banks to better manage their reputational risk.

The number of homeowners who received a permanent loan modification in the third quarter decreased from the prior quarter. Servicers also finalized fewer short sales.

The JPM settlement’s payout ratio compared to losses is less than 7%. The Countrywide settlement offered bond investors a payout ratio of almost 11% of losses, according to Barclays.

Standard & Poor’s, a unit of New York-based McGraw Hill Financial Inc., had argued that its ratings are opinions are protected by the First Amendment of the U.S. Constitution.

The settlement would resolve only a small portion of investors’ losses, opponents say.

The accord still needs approval from trustees overseeing the securities and may be subject to court review.

The GSEs will be lenient when it comes to enforcing the QM rule’s 3% cap.