The agency in charge of overseeing seven Bay Area bridges is poised to receive a payout worth more than $600,000 as part of a settlement with JPMorgan Chase over faulty lending practices.
The Bay Area Toll Authority, which is responsible for all regional spans except the Golden Gate Bridge, is scheduled to vote to accept a $604,757 settlement Wednesday. The payout is part of a $92 million settlement agreed upon by JPMorgan Chase and 25 states.
An extensive investigation found that the banking giant manipulated prices in the sale of interest rate swaps and other derivatives in its loan program between 2001 and 2005. BATA purchased two interest rate swaps during that tenure, making it eligible to receive reimbursements from the bank as part of the settlement.
If BATA’s board of directors accepts the payment Wednesday, the funds will go back into the agency’s regional bridge toll program, a $600 million account that pays for maintenance and seismic upkeep for seven Bay Area spans, according to BATA spokesman Randy Rentschler.
The BATA board could reject the settlement and pursue further litigation. However, agency staff have recommended against that option, saying BATA is unlikely to receive a bigger payout and would have to incur costly legal fees.
While agreeing to the settlement, JPMorgan Chase has not admitted to the misconduct allegations.