The SEC just announced that JPMorgan will pay over $150 million to settle charges that it misled investors in "CDO Squared."
The charges were that JPMorgan let Magnetar, a hedge fund, select the assets in CDO Squared, and then sold those assets to investors.
The problem was that JPMorgan didn't disclose to investors that Magnetar had selected the assets in CDO Squared, and then bet that those assets would fail.
The SEC says JPMorgan Chase misled investors in a complex mortgage securities transaction just as the housing market was starting to plummet.
The SEC said J.P. Morgan Securities will pay $153.6 million to settle charges that the firm misled investors in a a mortgage-backed securities transaction "just as the housing market was starting to plummet."
JPMorgan Chase & Co. is paying $153.6 million to settle accusations that it misled investors about mortgage-backed securities it sold just as the financial crisis was beginning. The Securities and Exchange Commission said in a compl...
The SEC announced that JP Morgan has agreed to pay $153.6 million to settle charges related to a $1.1 billion heavily synthetic CDO called Squared which JP Morgan placed in early 2007 and was managed by GSC Partners, a now defunct C...