JP Morgan, Morgan Stanley Settle Over ARS For $7B

Law360 (August 14, 2008, 12:00 AM EDT) -- Following the news that both Credit Suisse Group and UBS AG inked settlements with securities regulators over auction rate securities, two more of the world's largest investment banks have agreed to pay a combined total of over $7 billion to repurchase the securities from retail customers and pay fines.

JP Morgan Chase & Co. and Morgan Stanley agreed on Thursday to settle allegations that they misrepresented the risk associated with auction rate securities, New York Attorney General Andrew M. Cuomo said.

Under the agreement, JP Morgan...
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