11-5-09 CROOK ALERT!! JP MORGAN SETTLES FOR $700 MILLION IN BRIBERY CASE
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JP Morgan Securities Settles Bribery Case for $700 Million
JP Morgan Securities agreed to settle for $700 million in a case brought by the SEC. Morgan was charged with paying more than $8 million in bribes to facilitate the approval of Jefferson County, Alabama, councilmen for the sale of bonds and trading in derivatives contracts.
Two former JP Morgan employees, one of whom had already served a prison sentence in a similar case in Philadelphia, were named in the SEC lawsuit.
The settlement may set a precedent for similar cases involving governmental units throughout the country. However, the element of bribery and a criminal conviction in the Jefferson County case which helped induce JP Morgan to settle may not be a factor in other cases.
The settlement provided for Morgan to stop trying to collect $647 million in fees from Jefferson County for the derivatives contracts, pay $50 million to Jefferson County and a $25 million fine to the SEC. JP Morgan neither admitted nor denied guilt in the settlement. A spokesman for the company said JP Morgan had discontinued trading in derivatives with state and local governments.
Former Jefferson County Commission president, Larry Langford was convicted of accepting $235,000 in gifts and cash in connection with the JP Morgan bribery scheme.
11-5-09 NYTimes--JP Morgan Settles Bribery Case
- JP Morgan Settles Alabama Bribery Case
J. P. Morgan Securities will forfeit hundreds of millions of dollars in fees on derivatives contracts that it sold an Alabama county, under a settlement announced Wednesday that could offer hope to other governments staggering under similar deals.
11-5-09 BBC News--JP Morgan Settles Bribe Case
- BBC NEWS | Business | JP Morgan agrees $75m bribe fine
US banking giant JP Morgan agrees to pay a fine of $75m to settle charges that it bribed officials in Alabama.
Contact JP Morgan for "complete and innovative solutions"
- JP Morgan Website
JP Morgan is a leading financial services firm with global scale and reach. We offer our clients the most complete and innovative solutions in the industry .
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Comments
Dear Ralph Deeds,
Disgusting display of greed and corruption. Great hub!
Thanks!
It is a shame how integrity is almost gone in this country
Especially in Wall Street.
Another important hub, Ralph. Great work. Too bad there's so much corruption like this to write about. But at least we have people like you to call our attention to it, so thanks much for doing that! :)
Sara, thanks for your kind comment!
"It is a shame how integrity is almost gone in this country"
Almost?
Keep up the good work Ralph. The facts are there for anyone not in denial.
Thanks, CWB. I made up my mind a long time ago not to do business with Wall Street banksters. I only wish I could as easily avoid being ripped off by drug companies.
It ain't gonna be easy Ralph, but I think there's going to be a lot of decentralization going on pretty soon. This system is simply not sustainable.
It's time for a new subculture. We almost did it in the sixties but we fell asleep at the wheel, crashed and burned. If enough people just stop playing the game, we may end up with a few pockets of humanity here and there.
fishskinfreak2008 says:
3 weeks ago
Not surprising. It's still the same old story on Wall Street