Jessica Toonkel and Jonathan Stempel
October 25, 2013
As the U.S. government closes in on a $13 billion settlement with JPMorgan Chase & Co. over its mortgage practices, lawyers specializing in bank mergers are looking for ways to protect their clients from big losses in similar cases in the future.
A big chunk of the record settlement is attributed to bad mortgage loans at Washington Mutual and Bear Stearns – two banks that U.S. financial regulators encouraged JPMorgan to buy during the 2008 financial crisis.
That has triggered discussions among bank merger lawyers about how they can get indemnification clauses into future bailout deals, and obtain greater protection from losses from the Federal Deposit Insurance Corp., which seizes and sells troubled banks.