– JPMorgan Will Pay The SEC $153.6 Million To Settle The Magnetar Charges (Business Insider, June 21, 2011):
The SEC just announced that JPMorgan will pay over $150 million to settle charges that it misled investors in “CDO Squared.”
The charges were that JPMorgan let Magnetar, a hedge fund, select the assets in CDO Squared, and then sold those assets to investors.
The problem was that JPMorgan didn’t disclose to investors that Magnetar had selected the assets in CDO Squared, and then bet that those assets would fail.
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