JPMorgan Agrees To $480M ARS Buyback

Law360, New York (October 8, 2009, 3:09 PM EDT) -- JPMorgan Chase & Co. has reached a settlement that ends a multistate investigation of claims that the bank concealed the liquidity risks of investing in the doomed auction rate securities market, agreeing to offer full ARS buybacks to the tune of $480 million.

Under the deal, which Michigan's Office of Financial and Insurance Regulation announced Thursday, JPMorgan also will pay a fine of almost $665,000 to the state.

JPMorgan is the sixth major broker-dealer to reach global settlements with the OFIR over ARS, following deals with...
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