These settlements are common on Wall Street. The bank pays over millions of dollars but admits no wrongdoing. Nobody goes to jail. The SEC gets to crow that it was right and that it is protecting investors.
CNN reports: JPMorgan has agreed to pay $153.6 million to settle charges it misled investors in the sale of a complex mortgage-backed security, the Securities and Exchange Commission announced Tuesday.
The charges stem from the 2007 sale of a collateralized debt obligation, or CDO, that JPMorgan Securities marketed to investors without disclosing that a hedge fund involved in the creation of the CDO was betting it would decline in value, according to the SEC.