After a $13B deal, Schneiderman promises ‘more big paydays to come’

JP Morgan headquarters. (AP Photo/Seth Wenig)
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ALBANY—Attorney General Eric Schneiderman said Wednesday that New Yorkers can expect more big banks to admit culpability and pay settlements for their role in the federal housing crisis.

“I don't want to comment on who's next in line," Schneiderman said at a press conference announcing New York's portion of a federal settlement with JPMorgan Chase. "There are a few banks that I've been talking to yesterday and today. Each institution is different, but we'll be able to build off of this template.”

New York will receive more than $1 billion as part of the record-breaking settlement, with $613 million in cash and $400 million in consumer relief.

The deal does not grant J.P. Morgan immunity from future cases.

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“It does settle some civil actions, but federal investigations into criminal misconduct continue,” Schneiderman said. “This is a critically important step in restoring confidence in our financial system. There has got to be a message that no one is too big to be held accountable.”

Schneiderman, who was named a co-chair of the federal mortgage task force in 2012, declined to elaborate on the possibility of future criminal charges.

As part of the settlement, JPMorgan admitted its employees repeatedly misled investors and the public.

Schneiderman said employees routinely bundled toxic loans into securities and then misled investors, who suffered massive losses as the risky securities plummeted in value.

“There are more big paydays to come,” Schneiderman said. “But Chase was smart enough to realize that there is value [in settling]. They’re the first bank to say, ‘We want to put all of this behind us.’”