J.P. Morgan Chase & Co./Banc One Securities
J.P. Morgan Settles Auction Rate Securities Dispute for $Billions
J.P. Morgan was fined $25 million and agreed to buy back $3 billion in auction rate securities from investors as part of regulatory investigations into improper sales of auction rate securities. Securities regulators nationwide have been investigating most Wall Street brokerage firms based on allegations that the firms, including J.P. Morgan, misled investors by recommending and selling auction rate securities as liquid, cash-like investments without disclosing the risk that the securities could become illiquid.
J.P. Morgan Pays $135 Million Fine Related to Enron Fraud
J.P. Morgan agreed to a $135 million fine to settle SEC allegations that it helped Enron commit fraud. The SEC alleged that J.P. Morgan helped mislead investors by mischaracterizing loan proceeds as cash from operations on Enron’s financial statements.