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Economy
In reply to the discussion: STOCK MARKET WATCH -- Thursday, 5 April 2012 [View all]Demeter
(85,373 posts)51. JPMorgan Pays $20 Million to Settle CFTC Case Over Lehman
http://www.bloomberg.com/news/2012-04-04/jpmorgan-pays-20-million-to-settle-cftc-segregated-fund-claims.html
JPMorgan Chase & Co. (JPM), the largest U.S. bank, will pay $20 million to resolve a U.S. regulators claims that the firm mishandled customer funds from Lehman Brothers Holdings Inc. (LEHMQ) from 2006 to 2008.
JPMorgan, serving as Lehmans main clearing bank, counted client money as belonging to the firm itself while extending loans that let Lehman bet on markets, the Commodity Futures Trading Commission said today in a statement. When Lehman filed for bankruptcy in September 2008, JPMorgan refused to release the money for two weeks until CFTC officials insisted, the watchdog said.
Collapses of Wall Street firms including MF Global Holdings Ltd. (MFGLQ) have spawned customer claims that their money was frozen or lost after companies improperly used their holdings. Lehman at times had more than $1 billion of clients funds deposited with JPMorgan, which improperly counted segregated customer funds in extending credit over a 22-month period, according to the CFTC.
The laws applying to customer segregated accounts impose critical restrictions on how financial institutions can treat customer funds, and prohibit these institutions from standing in the way of immediate withdrawal, CFTC Enforcement Director David Meister said in the agencys statement. These laws must be strictly observed at all times, whether the markets are calm or in crisis.
AND JAMIE GETS MORE THAN THAT FINE, JUST FOR PULLING OFF THE HEIST OF THE CENTURY...THREE TIMES, DEPENDING ON WHEN YOU START COUNTING....
ANOTHER VERSION AT: http://www.reuters.com/article/2012/04/04/us-jpmorgan-cftc-idUSBRE8330NM20120404
JPMorgan Chase & Co. (JPM), the largest U.S. bank, will pay $20 million to resolve a U.S. regulators claims that the firm mishandled customer funds from Lehman Brothers Holdings Inc. (LEHMQ) from 2006 to 2008.
JPMorgan, serving as Lehmans main clearing bank, counted client money as belonging to the firm itself while extending loans that let Lehman bet on markets, the Commodity Futures Trading Commission said today in a statement. When Lehman filed for bankruptcy in September 2008, JPMorgan refused to release the money for two weeks until CFTC officials insisted, the watchdog said.
Collapses of Wall Street firms including MF Global Holdings Ltd. (MFGLQ) have spawned customer claims that their money was frozen or lost after companies improperly used their holdings. Lehman at times had more than $1 billion of clients funds deposited with JPMorgan, which improperly counted segregated customer funds in extending credit over a 22-month period, according to the CFTC.
The laws applying to customer segregated accounts impose critical restrictions on how financial institutions can treat customer funds, and prohibit these institutions from standing in the way of immediate withdrawal, CFTC Enforcement Director David Meister said in the agencys statement. These laws must be strictly observed at all times, whether the markets are calm or in crisis.
AND JAMIE GETS MORE THAN THAT FINE, JUST FOR PULLING OFF THE HEIST OF THE CENTURY...THREE TIMES, DEPENDING ON WHEN YOU START COUNTING....
ANOTHER VERSION AT: http://www.reuters.com/article/2012/04/04/us-jpmorgan-cftc-idUSBRE8330NM20120404
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