Jason Cato, Pittsburgh Tribune
A Pittsburgh-based home lender reached a settlement deal with J.P. Morgan Chase & Co., which it accused of selling it bad mortgage-backed securities that cost it hundreds of millions of dollars in the housing-bubble collapse.
Details of the settlement agreement between Federal Home Loan Bank of Pittsburgh and J.P. Morgan, announced on Friday before Allegheny County Common Pleas Judge Stanton Wettick, were not disclosed.
“The case is still before the court, and we are not commenting at this time,” said FHLBank spokeswoman Terri McKay.
J.P. Morgan officials declined comment on Saturday.
FHLBank, based in Downtown, had been seeking documents obtained by the government and a draft complaint the government made in its investigation of securities fraud against J.P. Morgan. The county’s largest bank on Nov. 19 settled with the government for $13 billion and admitted it overstated the quality of mortgages it sold to investors.