JP Morgan, one of the biggest investment banks in the world.
The economy has been suffering ever since the 2008 debt crisis. Most of the problem was in the fact that major banks were offering credit-default swaps, which basically were counting on the fact that businesses were going to fail. The banks sold billions of dollars’ worth of these and when the market started to crash, the government tried to save the entire banking system.
J.P. Morgan was involved in this and bought Bear Stearns in order to help stop the crash of the economy. Recently, they have agreed on a $4.5 billion settlement deal with 21 institutions. They have also agreed to a separate $13 billion dollar deal with the government.
A J.P. Morgan spokesperson, Jennifer Zuccarelli said, “This settlement is another important step in JP Morgan’s efforts to resolve legacy related matters, stemming from mortgage-related securities”. The bank will reimburse investors that put money into over 300 mortgage-backed securities.
This will not fix all the damages occurred from the 2008 debit crisis, but it will go a long to trying to bring about a stronger economy.