California public employees win big with $13 billion JP Morgan settlement

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Nov 20, 2013

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California public employees win big with $13 billion JP Morgan settlement

One of the big winners is California's public employee and teacher pension fund, commonly known as CalPers, who'll receive nearly $300 million.

People walk by JP Morgan Chase & Company headquarters in New York, August 14, 2013. The US August 14, 2013 charged a pair of former JPMorgan Chase traders with fraud in connection with the 2012 $6.2 billion 'London whale' trading losses. Federal prosecutors filed criminal charges against Javier Martin-Artajo and Julien Grout, alleging the two men kept false records on the trades, committed wire fraud and submitted false US securities filings.

One of the big winners is California's public employee and teacher pension fund, commonly known as CalPers, who'll receive nearly $300 million.

Yesterday, banking giant JP Morgan Chase agreed to a $13 billion dollar settlement with federal and state authorities.

The settlement, which is the largest ever between the Department of Justice and a corporation, is in response to claims over sales of mortgage backed securities that collapsed during the US housing crisis.

One of the big winners is California's public employee and teacher pension fund, commonly known as CalPers, who'll receive nearly $300 million.

We talk to Don Thompson from the AP about it.