SURS to Receive Settlement from JP Morgan Chase

SURS to Receive Settlement from JP Morgan Chase

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November 21, 2013
Gavel and Money

SURS to receive $16.2 million from JPMorgan Chase

Champaign, IL – The State Universities Retirement System will receive $16.2 million as part of a $100 million settlement with JPMorgan Chase & Company, Illinois Attorney General Lisa Madigan announced Tuesday. The settlement is regarding losses incurred by Illinois’ pension systems as a result of the bank’s misconduct in the lead up to the 2008 economic collapse.

This is the largest recovery settlement SURS has received to date. SURS received a $5.8 million settlement with Qwest Communications in 2007 and a $4.1 million settlement with WorldCom Inc. in 2005.

This is part of a national settlement with the U.S. Department of Justice (DOJ) and attorneys general from Illinois, California, Delaware, Massachusetts and New York, addressing the bank’s violations of federal and state laws in its marketing and sale of residential mortgage-backed securities.

In Illinois, the settlement will require JPMorgan Chase to pay $100 million to the state’s pension systems for losses sustained as a result of their investments in JPMorgan Chase, Bear Stearns and Washington Mutual mortgage-backed securities prior to 2009.

“We are happy to have this matter resolved and welcome the additional money for the fund,” said SURS Executive Director William Mabe. “I commend Attorney General Madigan for her efforts in recovering this money.”

In addition to the $16.2 million to SURS, JPMorgan Chase will pay $72.4 million to the Illinois Teachers Retirement System and $11.4 million to the Illinois State Board of Investment, which oversees the State Employees’ Retirement System, General Assembly Retirement System and Judges’ Retirement System.