Monday, 30 March 2015
Last updated 13 min ago
Jun 30 2011 | 1:49pm ET
JPMorgan Chase & Co will pay $153.6 million to settle SEC charges it defrauded investors with a mortgage CDO product.
The settlement was approved at a hearing in New York by U.S. District Judge Richard Berman, who said it was "another important step for the financial industry and the SEC in righting the wrongs of the recent financial crisis."
JPMorgan did not admit or deny wrongdoing in settling the charges, which stemmed from a security called “Squared CDO 2007-1.” The SEC alleges that the Chicago-based hedge fund Magnetar helped design Squared so that it could bet against it. JPMorgan sold the security to investors without disclosing the role played by Magnetar.
"By failing to disclose this, we allege that JPMorgan acted negligently, in violation of securities laws," the SEC's director of enforcement, Robert Khuzami, said.
JPMorgan sold $150 million of the Squared CDO notes to pension funds and other investors—the notes lost most of their value within 10 months.
The settlement recalls the July 2010 settlement under which Goldman Sachs Group paid $550 million to settle similar charges related to its Abacus collateralized debt obligation.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…