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.
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... Read Post
Back in March, we heard that the hedge fund Magnetar packaged CDOs with the riskiest assets they could find, apparently because JPMorgan allowed them to. Now the SEC is investigating whether or not JPMorgan did anything wrong by all... Read Post