JPMorgan Chase and Morgan Stanley will spend more than $7 billion to buy back auction-rate securities in a settlement announced Thursday. The deal ends investigations by the SEC and several states' attorneys general into false claims made by the two firms. At issue was the firms' continuing effort to bill the securities as a safe investment even after the unraveling credit markets made them less easily liquidated bets. Investigations continue into the activities of other companies.
JPMorgan and Morgan Stanley Settle Auction-Rate Securities Probes
The American Lawyer
August 15, 2008