JPMorgan Chase will pay $153.6 million to end U.S. civil fraud charges levied against it, Financial Times reports. The Securities and Exchange Commission (SEC) had charged JPMorgan of misleading investors in a mortgage-related collateralized debt obligation (CDO).
The bank failed to inform investors that hedge fundMagnetar, which helped craft the deal, had placed a bet to profit from its decline. JPMorgan has resolved the case without admitting or denying any wrongdoing. The bank will also repay investors in a different CDO, Tahoma.Click here for the story from Financial Times.
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