JPMorgan reaches 'agreement in principle' to settle SEC probes into MBS claims

JPMorgan disclosed in its 10-Q filing that, in January, the firm was advised by SEC staff that they are considering recommending to the SEC that civil or administrative actions be pursued arising out of two separate investigations they have been conducting. The first now involves potential claims against J.P. Morgan Securities and J.P. Morgan Acceptance Corporation I relating to delinquency disclosures in connection with a single mortgage-backed securitization. The second involves potential claims against Bear Stearns entities and J.P. Morgan Securities relating to disclosures concerning settlements of claims against originators involving loans included in a number of Bear Stearns securitizations. JPMorgan stated, "The Firm has reached an agreement in principle with the staff of the SEC to resolve these matters. The agreement in principle is subject to approval by the SEC, as well as court approval."