A New York appeals court on Dec. 1 rejected a JPMorgan Chase & Co. affiliate’s claim that it had not breached warranties it made when selling mortgage-backed securities in 2006. A panel of the intermediate-level Appellate Division, First Department, said the bank was bound by representations and warranties to its buyers about the creditworthiness of mortgage loans backing the bonds. The bank told buyers that a document listing the creditworthiness of each individual mortgage was “true, correct and complete in all material respects.”
BANK SETTLES OVER BRIBERY
ICBC Standard Bank PLC agreed on Nov. 1 to pay $36.9 million in a settlement with the U.S. and U.K. governments over a bribe paid to secure business with the Tanzanian government. It marked the first time that the U.K.’s Serious Fraud Office used a deferred-prosecution agreement against a company. The U.S. Department of Justice declined to prosecute on grounds the bank self-reported the wrongdoing and cooperated with the investigations.
