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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.
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.
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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COMMENTS
Showing 3 of 7 comments
Fondue
Dec 17, 2012 6:18 PM CST
Here's hoping someone from JPM will actually serve time. *Pissing into the wind.*
Drewzy
Dec 17, 2012 4:00 PM CST
Right!!!  billions of $$$'s gained fraudelently or unethically by big business,and it's called shenanigans, but an individual stealing a loaf of bread is referred to as a crime.
Twiny
Dec 17, 2012 2:25 PM CST
A $5 million dollar fine for Morgan Stanley is laughable.  They will consider it a cost of doing business and write it off on their taxes. That fine should be one hundred times that much. Maybe then you'd get Morgan Stanley's attention. Hell, it might even get them to play by the rules... for a day or two.

 
Facebook • Morgan Stanley • Bear Stearns • mortgage backed securities • JPMorgan Chase • credit unions • financial crisis • National Credit Union Administration • facebook IPO

 
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