Thursday, February 04, 2010

JP Morgan Chase fined for lack of disclosure

My San Antonio website:

JP Morgan Chase & Co. will pay a $3.2 million fine to Texas for failing to warn its customers about the risks of investing in the auction rate securities market, which collapsed in 2008.

JP Morgan Chase agreed to the fine in a consent order reached with state Securities Commissioner Denise Voigt Crawford. According to the order, the firm “failed to ensure that all of its registered representatives made appropriate disclosures to customers regarding the nature and risks of auction rate securities.” A multi-state investigation found JP Morgan Chase and other firms misled clients by assuring them that auction rate securities were safe and as liquid as cash.

Investors were unable to withdraw their money from their accounts after the market collapsed in early 2008.

No comments: