JPMorgan close to MBS settlement with SEC, FT reports

According to sources, JPMorgan (JPM) is in advanced settlement talks with the SEC over allegations of misconduct in the handling of mortgage-backed securities, the Financial Times reports. The talks involve an inquiry into Bear Stearns' mortgage operations, which was acquired by JPMorgan in 2008. The SEC is probing the bank’s alleged failure to pass on proceeds recovered from loan originators for soured mortgage loans to a trust managing residential mortgage-backed securities.

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