Alabama Debt Deal Bites JPMorgan

In an agreement hashed out in federal court, JPMorgan Chase will pay a steep price for its role in the bankruptcy of Jefferson County, Alabama. In the deal, JPMorgan will lose $842 million of the $1.22 billion in sewer debt it holds, after giving up $647 million in termination fees on derivatives, and a $75 million complaint settled with the SEC. While some residents of the county are still up in arms, the deal has better terms than that offered in 2011 and will save the county more than $1 billion over time.