WASHINGTON -- JPMorgan Chase has agreed to pay $5.1 billion to resolve claims that it misled Fannie Mae and Freddie Mac about risky home loans and mortgage securities it sold them before the housing market collapsed.
The Federal Housing Finance Agency, which oversees Fannie and Freddie, announced the settlement Friday with JPMorgan, the largest U.S. bank. A broader deal with the Justice Department is still being negotiated.
JPMorgan sold around $33 billion in mortgage securities to Fannie and Freddie between 2005 and 2007, according to the agency. That was the second-most sold to Fannie and Freddie ahead of the crisis, behind only Bank of America Corp. The securities soured after the housing bubble burst in 2007, losing billions in value.
Fannie and Freddie were rescued in a taxpayer bailout in 2008 as they sank under the weight of mortgage losses.
Obama visits NYC school
NEW YORK -- President Barack Obama on Friday visited the Pathways in Technology Early College High School in New York City's Brooklyn borough to deliver a message about the urgency of education reform in the global economy.
He said the U.S. should be creating more schools like Pathways, casting them as essential in preparing the next generation of workers and entrepreneurs for competition in a global economy.
JonBenet Ramsey case
DENVER -- Nearly a decade before DNA evidence cleared the parents of JonBenet Ramsey in the killing of their 6-year-old daughter, a grand jury pursuing the case decided to indict John and Patsy Benet on charges of child abuse leading to the girl's death, according to documents unsealed Friday.
The documents, four pages in total dating from 1999, were released in response to a lawsuit brought by a newspaper reporter and the Reporters Committee for Freedom of the Press.
JonBenet, a child beauty queen, was found strangled and bludgeoned in the basement of her family's home in Boulder, Colo., the day after Christmas in 1996.
School back after killing
DANVERS, Mass. -- Students at the Massachusetts school where a classmate allegedly killed a teacher returned Friday, surrounded by extra safety measures as well as tributes to the victim, including trees adorned with pink ribbons, her favorite color.
Classes resumed at Danvers High School two days after student Philip Chism, 14, was charged with murder in the death of Colleen Ritzer, a 24-year-old math teacher. School near Boston had been canceled the previous two days.
Guardsman in shooting
MEMPHIS, Tenn. -- A Tennessee National Guard recruiter was charged in federal court on Friday, accused of shooting three of his superiors at an armory after he was told he would be relieved of duty and dismissed from active service.
The incident began shortly after Amos Patton, a 42-year-old sergeant first class was ordered to the armory north of Memphis Thursday. No one was fatally shot.
5 injured in mishap at fair
RALEIGH, N.C. -- Officials at the North Carolina State Fair were trying to determine Friday what caused an accident on a carnival ride that left five injured, two of them critically.
The accident happened after the "Vortex," a ride known for its wild twirls and flips, started up again as riders were getting off late Thursday evening, officials said. The injured riders range in age from 14 to 39.