Colorado part of JPMorgan Chase settlement

Colorado is part of a $92 million multi-state settlement with JPMorgan Chase to settle allegations that people working for subsidiaries of the financial holding company engaged in anti-competitive conduct in the municipal bond derivatives industry.

The settlement is one component of a $228 million coordinated law enforcement and regulatory action, involving the Department of Justice, the Securities and Exchange Commission, the Internal Revenue Service, the Office of the Comptroller of the Currency and the Federal Reserve Board.

As part of the settlement, JPMorgan Chase agreed to pay $65.5 million to reimburse certain government and nonprofit organizations across the country who were injured as a result of the alleged conduct. Chase will also pay $3.5 million civil penalties and $6 million to reimburse states for fees and costs incurred during the investigation.

The ongoing multi-state investigation has revealed allegedly collusive and deceptive conduct by individuals at several financial institutions. The conduct included bid rigging, agreements to refrain from bidding, and fraud. Ultimately the conduct resulted in lower yields, lower rates of return, or less favorable terms for government and not-for-profit organizations.

Local government and nonprofits in Colorado will learn of their share of the settlement in the coming months, said Attorney General John Suthers.

Comments are closed.