JPMorgan to Pay $154 Million to Settle SEC Charges

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Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
JPMorgan to Pay $154 Million to Settle SEC Charges

The Securities and Exchange Commission today announced that J.P. Morgan Securities, a unit of JPMorgan Chase [JPM 40.77 0.29 (+0.72%) ] , will pay $153.6 million to settle SEC charges that it misled investors in a complex mortgage securities transaction just as the housing market was starting to plummet.

Under the settlement, harmed investors will receive all of their money back. The agreement is subject to court approval.

In settling the SEC's fraud charges against the firm, J.P. Morgan also agreed to improve the way it reviews and approves mortgage securities transactions.

The SEC alleges that J.P. Morgan structured and marketed a synthetic collateralized debt obligation (CDO) without informing investors that a hedge fund helped select the assets in the CDO portfolio and had a short position in more than half of those assets. As a result, the hedge fund was poised to benefit if the CDO assets it was selecting for the portfolio defaulted.

As usual no one goes to jail. Its just the cost of doing 'business'.

tictac1's picture
Status: Silver Member (Offline)
Joined: Sep 25 2009
Posts: 175
Does anyone actually believe

Does anyone actually believe that all these rules and regs are there to protect us?  Actions speak louder than words.  From the SEC to our local sheriff department, the emphasis is on protecting corporate America and their profit margin, not us peons.  In my county, those who build a home themselves are subjected to intense scrutiny, many times resulting in fines and fees for things the builder never knew were required, whereas contractors are not only frequently NOT inspected, they are allowed to do outright illegal things.  Our sheriff dept. seizes bank accounts of people they arrest, then declines to press charges but keeps the money/assets.  I believe that's called a "racket".

In this case, it's amazing that investors got anything, other similar actions by the SEC have been to profit themselves.

"Protection" is the buzzword used to sell tyranny to the ignorant.


SteveW's picture
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
tictac1 wrote: I believe
tictac1 wrote:

I believe that's called a "racket".

Hmm, sounds like outright theft to me.

I wonder why they didn't investigate and charge the individuals involved at JPM. Have things changes so much since Martha Stewart was indicted for insider trading and found guilty of lying to law enforcement. Cripes, major Wall street CEOs lie under oath before Congress these days.

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