SEC Rebuffs JP Morgan Pay-To-Play Dismissal Effort

Law360, New York (February 11, 2010, 6:29 PM EST) -- The U.S. Securities and Exchange Commission has declared that interest rate swaps fall under its enforcement purview — a proclamation at odds with some financial industry members' contentions — in a lawsuit accusing two former JP Morgan Securities Inc. managing directors of engaging in a pay-to-play scheme to win a $5 billion municipal bond deal.

The agency asserted its arguments for why it can bring claims over interest rate swaps in a filing submitted on Wednesday in the U.S. District Court for the Northern District of...
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