Multi-Million Dollar State Settlement with JP Morgan Case
Get Breaking News First
JEFFERSON CITY, Mo. (KMOX) – Attorney General Chris Koster today announced a $92 million settlement with JP Morgan Chase & Co. as part of an ongoing nationwide investigation of alleged anti competitive and fraudulent conduct in the municipal bond derivatives industry.
As part of the multistate settlement, JP Morgan has agreed to pay $65.5 million in restitution to affected state agencies, municipalities, school districts, and not-for-profit entities nationwide that entered into municipal derivative contracts with JP Morgan between 2001 and 2005. In addition, JP Morgan agreed to pay a $3.5 million civil penalty and $6 million in fees and costs of the investigation to the settling states. Koster said Missouri issuers will have the opportunity to recover more than $400,000 from the settlement.
“We’re pleased to get funds returned to municipalities, schools, and not-for-profits that were harmed by this scheme,” Koster said.
The state settlement also provides that JP Morgan will pay $17 million in restitution directly to certain other government and not-for-profit entities as part of separate agreements it entered into today with the U.S. Securities and Exchange Commission and the Office of the Comptroller of the Currency.
The state, SEC, and OCC settlements are distinct components of a coordinated global $228 million settlement that JP Morgan entered into today with the U.S. Department of Justice’s Antitrust Division, the Internal Revenue Service, and the Federal Reserve Board. JP Morgan is the third financial institution to settle with a multistate working group in the ongoing municipal bond derivatives investigation following Bank of America and UBS AG.