JPMorgan To Pay SEC $154M Over Failed CDO

Law360, New York (June 21, 2011, 3:01 PM EDT) -- JPMorgan Chase & Co. agreed Tuesday to pay nearly $154 million to settle claims in New York that it sold investors complex mortgage securities even though a hedge fund that helped design them stood to benefit from the housing downturn.

According to a complaint filed by the U.S. Securities and Exchange Commission in federal district court in Manhattan, J.P. Morgan Securities LLC structured and marketed an approximately $1.1 billion collateralized debt obligation called Squared CDO 2007-1 without telling investors that hedge fund Magnetar Capital LLC helped...
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