JPMorgan to Pay Ambac $995M to Settle RMBS-Related Claims

Industries Reuters

Insurer Ambac Financial said JPMorgan Chase & Co will pay the company $995 million in cash to settle disputes and litigation related to mortgage-related securities.

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The agreement settles claims related to residential mortgage-backed securities (RMBS) transactions insured by Ambac.

The settlement will have a positive impact on Ambac's fourth-quarter operating results and its claims paying resources, Chief Executive Nader Tavakoli said in a statement.

(Reporting By Sudarshan Varadhan in Bengaluru; Editing by Saumyadeb Chakrabarty)