CalPERS, CalSTRS To Receive Nearly $300M in JPMorgan Settlement
On Tuesday, California Attorney General Kamala Harris (D) announced that CalPERS and the California State Teachers' Retirement System will receive nearly $300 million in a settlement with JPMorgan Chase, the AP/Contra Costa Times reports.
The funding is part of a broader $13 billion settlement with the U.S. Department of Justice.
Details of Settlement
The payout comes after Bear Stearns and Washington Mutual -- which both were purchased by JPMorgan in 2008 -- misrepresented the value of residential mortgage-backed securities sold to the two California pension funds between 2004 and 2008 (Thompson, AP/Contra Costa Times, 11/19).
The total settlement is the largest civil settlement between the federal government and a single company.
The $299 million in damages awarded to California includes:
- $261 million that will go to CalPERS; and
- $19.5 million that will go to CalSTRS.
The remaining funds will go to the state attorney general's office to pay for legal fees (Walsh, Sacramento Bee, 11/19).
In a statement about the settlement, Harris said, "This settlement returns the money to California's pension funds that JPMorgan wrongfully took from them" (Anderson, Sacramento Business Journal, 11/19).
On Tuesday, Capital Public Radio's "KXJZ News" reported on the settlement (Orr, "KXJZ News," Capital Public Radio, 11/19).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.