May 19, 2010
The State Corporation Commission has approved a settlement that requires banking and investment firm JPMorgan Chase and Co. to pay $209,000.
The payment is part of a multistate settlement over the firm's sale of auction-rate securities.
The SCC says JPMorgan Chase misled Virginia investors about the
liquidity of those securities. Instead of being cash-like investments, the securities were actually long-term investments that were subject to a complex auction process that failed in early 2008.
Tuesday's announced settlement stemmed from a multistate task force investigation. The SCC joined the investigation in April 2008 after receiving complaints from investors.
The SCC says the $209,000 will be paid to the commonwealth.