CalSTRS to Recover Its Investment With JP Morgan Chase in Federal Settlement
WEST SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) can expect to receive approximately $19.5 million plus interest from JP Morgan Chase & Co. as part of a landmark $13 billion settlement with the U.S. Justice Department over the bank’s misrepresentation of residential mortgage-backed securities leading up to the financial crisis.
CalSTRS Chief Executive Officer Jack Ehnes issued the following statement:
“This is welcome news to CalSTRS and the educators of California, as we stand to recoup our investment and hopefully help us move forward from this traumatic economic collapse.
“We thank the California Attorney General and the U.S. Justice Department for their efforts through the Mortgage Fraud Strike Force at making us whole with this investment as we continue to make the necessary moves to ensure the trust and to secure the financial future of our members.”
The California State Teachers’ Retirement System, with a portfolio valued at $176 billion as of October 31, 2013, is the largest educator-only pension fund in the world. CalSTRS administers a hybrid retirement system, consisting of traditional defined benefit, cash balance and voluntary defined contribution plans. CalSTRS also provides disability and survivor benefits. For 100 years, CalSTRS has served California’s public school educators and their families, who today number 862,000 from the state’s 1,600 school districts, county offices of education and community college districts.