JPMorgan Ditches Municipal Swaps Business

Law360, New York (September 4, 2008, 12:00 AM EDT) -- JPMorgan Chase & Co., the third-largest U.S. bank by assets, reportedly will stop selling interest rate derivatives to local governments amid allegations of price-fixing in the $2.6 trillion U.S. municipal bond market and the bank's implication in the debt crisis of Alabama's largest county.

According to a memo released yesterday to employees from the head of JPMorgan's municipal bonds division, the New York-based bank will only market interest-rate derivatives to non-profit customers due to the currently shaky status of the municipal bond market, Bloomberg News reported...
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