illinois' pension funds will be getting a hundred-million dollars in restitution from J-P-Morgan Chase. The bank is settling with the federal government and several states over its actions before the Great Recession of 2008. Illinois Attorney General Lisa Madigan says J-P-Morgan duped the state's pension systems and other clients into investing in bad mortgages. When the housing market crashed, so did the rest of the economy:
"These Wall Street banks, all of them knew that they were in fact putting literally lousy mortgages -- unsustainable mortgages with toxic features -- into investments, claiming they were good investments, when they knew, from the very beginning, that they were not going to be good investments."
J-P-Morgan's settlement will go to the pension systems for state employees, university workers, and public school teachers. The money is still just a tiny fraction of the state's massive pension liability. Illinois continues to pursue a case against credit-rating agency Standard and Poors. The state accuses the company of giving high ratings to investments that did not deserve it.
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