A reported, developing settlement between mortgage securities investors and JP Morgan — separate from the $13 billion mortgage settlement recently announced — would be more generous to bondholders than a similar deal by Countrywide if the bonds covered are restricted to those targeted by law firm Gibbs and Bruns, according to Barclays analysts.

News reports said that talks have pegged the deal at $5.75 billion. The settlement would compensate bondholders for breaches of representations and warranties in residential mortgage backed deals (RMBS) issued by JPM, Bear Stearns and Washington Mutual before the crisis.  

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