JPMorgan, Credit Suisse Paying $417 Million in SEC Case

WASHINGTON (AP) -- JPMorgan Chase (NYSE: JPM  ) and Credit Suisse (NYSE: CS  ) have agreed to pay a combined $417 million to settle federal civil charges of deceiving investors through sales of risky mortgage bonds ahead of the 2008 financial crisis.

The Securities and Exchange Commission says that JP Morgan failed to tell investors that mortgages tied to the bonds were delinquent. And both banks failed to properly disclose practices that allowed them to profit while investors lost millions.

JPMorgan is paying $296.9 million. Credit Suisse will pay $120 million. The money will go to the investors, the SEC said.

It is the latest case against major financial firms for their conduct in the years preceding the 2008 crisis.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2117300, ~/Articles/ArticleHandler.aspx, 7/22/2014 5:17:53 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement