The Trouble With JPMorgan: BlackRock And Neuberger Berman To Get $5.75 Billion, Similar to Settlement With Bank of America

In the latest case, at least $5.75 billion is being sought by a group of bondholders including BlackRock Inc. (NYSE:BLK) and Neuberger Berman Group LLC to recoup losses from mortgage-backed securities sold to them before the financial crisis began, according to The Wall Street Journal, which cited people close to the talks.

The discussions are separate from a tentative agreement with the DOJ that was announced Saturday, which would resolve several other JPMorgan mortgage-bond lawsuits and investigations. That larger pact is expected to be completed as early as this week, according to The Journal.

The pact comes hot on the heels of another $4 billion deal that JPMorgan agreed to with the Federal Housing Finance Agency, Fannie Mae and Freddie Mac’s regulator, that would resolve a 2011 lawsuit that alleges that the bank misled the housing-finance giants over the quality of the securities sold to them during the housing boom. The $4 billion settlement would be drawn from the $13 billion settlement being worked out with the DOJ.

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