Feds Sue JPMorgan Over Bear Stearns Shenanigans

Meanwhile, Morgan Stanley fined for Facebook IPO irregularities

By Kevin Spak,  Newser Staff

Posted Dec 17, 2012 1:52 PM CST

(Newser) – JPMorgan is staring down a lawsuit over Bear Stearns' alleged mortgage-backed securities misconduct. The National Credit Union Administration, the federal regulator that oversees credit unions, has sued the big bank, alleging that Bear Stearns misled the credit unions it sold $3.6 billion in securities to, causing many to collapse, Reuters reports. JPMorgan, which bought Bear Stearns when it was on the brink of collapse in 2008, has declined to comment.

In other regulatory-actions-against-banks news, Morgan Stanley has agreed to pay Massachusetts a $5 million fine for its widely-criticized handling of Facebook's IPO. Massachusetts' Secretary of the Commonwealth said Morgan Stanley had engaged in "dishonest and unethical practices" in influencing research analysts before the offering, Bloomberg reports.

In this July 18, 2007 file photo, the logo for Bear Stearns is shown at its corporate headquarters in New York.   (AP Photo/Mark Lennihan, File)
In this Oct. 15, 2008 file photo, an exterior view of JPMorgan Chase offices is shown in San Francisco.   (AP Photo/Paul Sakuma, file)
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