The recovery, plus interest, seeks to make CalPERS whole on $221.6 million in losses the Pension Fund sustained on investments in mortgage-backed securities sold or underwritten by the bank.
“We are very pleased with this settlement and the recovery for our members and their families,” said Henry Jones, Chair of CalPERS Investment Committee. “This helps bring closure and justice in this matter for those who were harmed and holds JPMorgan accountable for its actions.”
JPMorgan came under federal criminal investigation over its sale of mortgage-backed securities and securitization practices that contributed to the 2008 financial crisis.
The Justice Department told JPMorgan that prosecutors had “preliminarily concluded” that the bank violated civil securities laws related to mortgage securities it packaged and sold from 2005-07.
“We are grateful for the leadership of California’s Attorney General who took action to protect us, our members and other investors,” said Jones.
CalPERS is the largest public pension fund in the U.S., with more than $275 billion in assets. We administer health and retirement benefits on behalf of 3,064 public school, local agency and state employers. Our members number more than 1.6 million in our retirement system and more than 1.3 million in our health plans.
