WASHINGTON - JPMorgan Chase & Co. has agreed to pay $211 million after admitting one of its divisions rigged dozens of bidding competitions to win business from state and local governments.
J.P. Morgan Securities LLC made at least 93 secret deals with companies that handled the bidding processes in 31 states, the Justice Department and the Securities and Exchange Commission said Thursday. Those deals allowed the bank to peek at competitors' offers.
Banks help municipalities invest the money they raise from bond offerings so that they can earn interest before paying for projects. They compete by submitting to state and local governments the best yield they can offer.
The alleged bid-rigging deprived governments of a true competitive process that would produce the best returns on their investments, Assistant Attorney General Christine Varney said in a statement.
JPMorgan's settlement covers complaints brought by the SEC, the Internal Revenue Service, bank regulators and 25 state attorneys general. Nearly a quarter of the money will go toward settling civil fraud charges brought by the SEC. A large portion will be divided among states, in part to pay restitution to victims of the fraud.
JPMorgan agreed to cooperate with the investigation in exchange for not being prosecuted, the agency said.
The company admitted and accepted responsibility for the illegal conduct but blamed it on former employees of a division that has been shut down.
It said it "is pleased to have resolved this matter with its regulators," adding that the settlement will not affect its performance.
by Associated Press July 8, 2011
JPMorgan pays $211M to settle bid-rigging charges
Reuters: Business News
National Commercial Real Estate News From CoStar Group
Latest stock market news from Wall Street - CNNMoney.com
- ► 2019 (55)
- ► 2018 (76)
- ► 2017 (81)
- ► 2016 (145)
- ► 2015 (146)
- ► 2014 (102)
- ► 2013 (395)
- ► 2012 (392)
- Almost half of mortgages in Arizona are 'underwate...
- Study: Arizona among worst states for consumer cre...
- Real-estate expert sees disconnect in lending
- Phoenix-area homebuilders adjust to market
- Gilbert new-home construction on rise, leading Val...
- Demolition site in Phoenix scheduled for trustee's...
- Scottsdale-based Meritage home sales, profits plun...
- Dissecting the rival debt plans' key differences
- Home-price index finally lines up with local reali...
- U.S. debt default would harm nation, individuals
- Fannie Mae Downgrades Housing Outlook. Again
- Can Brian Moynihan fix America's biggest bank? - T...
- Surprise! The big bad bailout is paying off
- Phoenix-area homebuilders adjust to market
- Savings Bonds' shift to digital-only marks end of ...
- Gilbert considers large apartment complex near San...
- A boom in corp. profits, a bust in jobs, wages
- Scams, manipulation, fraud targeting elderly on th...
- ASU launching 2 programs to offer help in resolvin...
- $86 million land purchase would expand Scottsdale ...
- Old Rawhide site in Scottsdale might become new ap...
- UPDATE: Freeport-McMoRan 2Q Net Income Doubles As ...
- Luxury-home broker Danley opens his own firm
- Storytellers: For 30 years, Walt Danley quietly cl...
- Realtors' confidence levels shoot up, survey repor...
- Chandler's office vacancy rate drops sharply
- Hispanic organization loan brings CityScape hotel
- FTC paying nearly $108M to Countrywide borrowers
- Bipartisan debt-reducing plan targets mortgage ded...
- Mortgage 'robo-signing' goes on
- 2 Phoenix medical-office buildings sell for $32.75...
- Analysis: Banks in Arizona need cash
- Lenders must give details on credit denials
- Home building jumps 14.6% in June
- Most of Tempe condo project is acquired
- Group proposes to build beach club in Entertainmen...
- Expert: Commercial loan modifications possible
- US builders' outlook rises after 2011 low
- 7 tips for rebalancing your fund portfolio
- Citigroup Q2 Profit Rises 24%, Tops View - Update
- Down on the farm, investors see big potential
- Apartment community is sold to fund for $40 millio...
- Prescott bank to open as a Foothills branch
- JPMorgan investment banking gains
- Foreclosure delays could hold off housing rebound
- Phoenix-area leasing of offices up in 1st half of ...
- Developer ready to channel energy into completing ...
- 26 acres in south Chandler sells for $2 million
- azcentral.com blogs - Scottsdale Republic Editoria...
- Settlements, lower trading to hurt 2Q bank earning...
- Feds ease foreclosure rules for unemployed FHA bor...
- Part of Scottsdale Promenade purchased
- Phoenix-area foreclosures are down again
- Bankruptcy filings in Phoenix area fall again
- Tenants, Glendale officials retain high hopes for ...
- 'Strategic defaulters' tend to be affluent, savvy ...
- Weidner fattens property portfolio
- Jobless homeowners to get more leniency
- Dimon-Bernanke Skirmish Shows Bankers Losing - Bus...
- JPMorgan pays $211M to settle bid-rigging charges
- Phoenix area housing market gaining ground, new da...
- New IMF chief vows to empower developing nations
- New regulation governs short sales
- Q&A on eligibility for homeowner aid
- Downtown Phoenix parcel set for housing
- Construction spending falls, manufacturing recover...
- Musical nameplates
- Office leasing may soon revive
- ASU realty professor Jay Butler retires
- Viad buys resort for $16 million
- Treasury secretary may exit after debt talks
- Scottsdale council increases maximum building heig...
- Fed limits debit fees retailers pay
- Bank of America pays $8.5 billion investor settlem...
- Phoenix shopping center sold for $30 million
- Scottsdale office buildings sold for $60 million
- Despite bad economy, homebuilder has Valley's top-...
- Fulton Homes to exit Chapter 11
- Former home of McCains up for foreclosure auction
- French finance minister appointed to lead IMF
- ▼ July (80)