Bank must pay millions over
loans debacle

The agreement is to settle claims over “defective” mortgages which were covered by a government insurance and refinancing scheme, costing the taxpayer millions of dollars when loans defaulted.

US district judge J Paul Oetken in Manhattan approved the deal, which calls for JPMorgan to pay the money within a month.

The firm must also install an improved quality control programme to review loans it underwrites.

The bank said it had already set aside money for the settlement and any financial impact from exposure to future claims was not expected to be significant.